Brown v. Commissioner
United States Tax Court
Petitioner transferred $ 175,000 of securities in trust to pay the income in monthly installments to four persons for their lives and the remainder over to charity. Petitioner claimed four $ 3,000 exclusions on the gift tax return for the gifts to the income beneficiaries. Respondent disallowed the claimed exclusions on the ground that the interests were contingent upon the actions of the trustees and were, therefore, future interests. Held, for the petitioner.
Read the full summary
Petitioner transferred $ 175,000 of securities in trust to pay the income in monthly installments to four persons for their lives and the remainder over to charity. Petitioner claimed four $ 3,000 exclusions on the gift tax return for the gifts to the income beneficiaries. Respondent disallowed the claimed exclusions on the ground that the interests were contingent upon the actions of the trustees and were, therefore, future interests. Held, for the petitioner. The income beneficiaries received a substantial present interest which had a value in excess of the $ 3,000 exclusion as to each…
1Opinion of the Court
The Commissioner determined a deficiency in gift tax for the year 1953 in the amount of $4,141.31. The deficiency is based on two adjustments, only one of which is in issue. The adjustment in issue is the respondent’s disallowance of four $3,000 exclusions claimed for certain transfers in trust on the ground that the transfers were of future interests within the meaning of section 1003 (b), I. R. C. 1939.1
FINDINGS OF FACT.'
A stipulation of facts has been filed and is incorporated herein by this reference.
Frances Carroll Brown, petitioner, of Roseland, New Jersey, filed a gift tax return for…
2Cases cited9 opinions
- Helvering v. StuartSupreme Court of the United States · 1942
- United States v. PelzerSupreme Court of the United States · 1941
- Commissioner v. DisstonSupreme Court of the United States · 1945
- Sears v. ChildsMassachusetts Supreme Judicial Court · 1941
- Biddle v. CommissionerUnited States Tax Court · 1948
4 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Estate of Ford v. CommissionerUnited States Tax Court · 1969
- Pardee v. CommissionerUnited States Tax Court · 1967
- Quatman v. CommissionerUnited States Tax Court · 1970
- Pettus v. CommissionerUnited States Tax Court · 1970
- Martinez v. CommissionerUnited States Tax Court · 1976
12 more not listed; retrieve them via the Exa API.