Flato v. Commissioner
United States Tax Court
1. The mother and father each created three irrevocable trusts, one for the benefit of each of their three sons, and transferred $ 1,000 to each trust. Also, the mother and father each gave $ 4,000 to each of the three sons.
Read the full summary
1. The mother and father each created three irrevocable trusts, one for the benefit of each of their three sons, and transferred $ 1,000 to each trust. Also, the mother and father each gave $ 4,000 to each of the three sons. The trusts bought the parents' interest in two businesses, which were then operated by the six trusts in partnership with the first son (in his own right). This son was trustee of the two trusts for the second son, who was trustee of the two trusts for the first son; the first and second sons were trustees of the two trusts for the third son. Distributions of trust income…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The first question is whether or not the income of the six trusts is taxable to the beneficiaries of those trusts.
Three of the petitioners are sons of the grantors of six trusts. The other two petitioners are wives of two of the sons. The mother and father owned a three-fourths interest in three partnerships. The other one-fourth interest was owned by the son Franklin. It was the parents’ desire to divest themselves of the interest in two of these partnerships and place it in trust for the benefit of their three sons. The mother and father each created three trusts,…
2Cases cited5 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Mallinckrodt v. CommissionerUnited States Tax Court · 1943
- Fawn Lake Ranch Co. v. Comm'rUnited States Tax Court · 1949
- Emerson v. CommissionerUnited States Tax Court · 1949
- Stix v. CommissionerUnited States Tax Court · 1945
3Cited by6 opinions
- Frank Scofield, Collector of Internal Revenue v. A. J. Lewis and Grace M. LewisCourt of Appeals for the Fifth Circuit · 1958
- Robert B. Gotfredson and Charlotte B. Gotfredson v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- Miller v. United StatesDistrict Court, D. Nebraska · 1951
- Robert H. Flato v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1957
- Flato v. CommissionerUnited States Tax Court · 1955
1 more not listed; retrieve them via the Exa API.