Estate of Lee v. Commissioner
United States Tax Court
Decedent provided for establishment of a testamentary trust out of the residue of his estate with assets in excess of $ 600,000, to pay an annuity of $ 5,000 to a 78-year-old brother for life, and to distribute the remaining income and corpus to two named charities.
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Decedent provided for establishment of a testamentary trust out of the residue of his estate with assets in excess of $ 600,000, to pay an annuity of $ 5,000 to a 78-year-old brother for life, and to distribute the remaining income and corpus to two named charities. However, the trustees were authorized to pay to the brother or on his behalf, out of income or principal, such amounts as they may deem advisable to take care of any "emergency, illness or necessity" of the brother. Held, unlike Merchants Bank v. Commissioner, 320 U.S. 256, the trust instrument provided measurable standards…
1Opinion of the Court
OPINION.
Raum, Judge:
The Commissioner determined a deficiency of $196,229.59 in estate tax. The petitioners claim that there is no deficiency, and that the estate tax was overpaid in the amount of $4,711.37.1 The facts have been stipulated.
The only question for decision is whether the respondent erred in disallowing a deduction from the gross estate taken by petitioners under section 812 (d) of the Internal Revenue Code of 1989 on account of legacies to two charitable corporations, the Salvation Army and St. Luke’s Hospital. Respondent disallowed the deduction for the reason that “the amount…
2Cases cited10 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Henslee v. Union Planters National Bank & Trust Co.Supreme Court of the United States · 1949
- Merchants Nat. Bank of Boston v. CommissionerSupreme Court of the United States · 1943
- Hartford-Connecticut Trust Co. v. EatonCourt of Appeals for the Second Circuit · 1929
- Lincoln Rochester Trust Company, as of the Estate of Frank M. Harroun v. George T. McGowan Collector of Internal RevenueCourt of Appeals for the Second Circuit · 1954
5 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- St. Louis Union Trust Company, of the Estate of Frank Landwehr, Deceased v. United StatesCourt of Appeals for the Eighth Circuit · 1967
- Varian v. CommissionerUnited States Tax Court · 1966
- Buckwalter v. CommissionerUnited States Tax Court · 1966
- Estate of Sowell v. CommissionerUnited States Tax Court · 1980
- Estate of Wood v. CommissionerUnited States Tax Court · 1963
15 more not listed; retrieve them via the Exa API.