Dwight W. Ellis, Jr. v. Commissioner of Internal Revenue

Appellant seeks review of a Tax Court decision sustaining the Commissioner’s determination of a $4,468.48 deficiency in appellant’s gift tax for the year 1963. 1

The gift was accomplished when appellant, acting as donor, established a trust pursuant to an agreement in contemplation of marriage that he had entered into with the trust beneficiary. Under the agreement the beneficiary waived all support or alimony rights in the event of a legal separation or divorce and agreed not to assert claims against appellant’s estate as his widow in the event of his death. Appellant and the beneficiary were…