Schoonmaker v. Commissioner
United States Tax Court
Decedent during his lifetime created a trust the income of which was to be paid to himself for life, then to his wife for life, and thereafter to certain named charities. The trustee, in its discretion, had the right to invade the principal for the "maintenance, support, comfort and well-being" of the beneficiaries. After decedent's death the wife executed disclaimers of any interest in the principal of the trust fund.
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Decedent during his lifetime created a trust the income of which was to be paid to himself for life, then to his wife for life, and thereafter to certain named charities. The trustee, in its discretion, had the right to invade the principal for the "maintenance, support, comfort and well-being" of the beneficiaries. After decedent's death the wife executed disclaimers of any interest in the principal of the trust fund. Held, that the value of the remainder of the trust after the wife's life estate is deductible as a charitable bequest.
1Opinion of the Court
OPINION.
Smith, Judge:
The respondent has determined a deficiency of $138,771.69 in the estate tax of the estate of James M. Schoonmaker, Jr., deceased. The principal question in issue is whether the estate is entitled to deduct as a charitable bequest the value of the remainder of a trust estate, the income from which is to go to certain named charities after the death of decedent’s widow, who is a life beneficiary with the right to invade the trust principal under certain circumstances.
Other minor issues raised in the pleadings have been settled by stipulation.
Most of the facts are set out in…
2Cases cited7 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Merchants Nat. Bank of Boston v. CommissionerSupreme Court of the United States · 1943
- Jack v. CommissionerUnited States Tax Court · 1946
- Cutler v. CommissionerUnited States Tax Court · 1945
- Harrison's EstateSupreme Court of Pennsylvania · 1936
2 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Berry v. KuhlCourt of Appeals for the Seventh Circuit · 1949
- Pardee v. CommissionerUnited States Tax Court · 1967
- Lincoln Rochester Trust Co v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1950
- Estate of Lee v. CommissionerUnited States Tax Court · 1957
- Jones v. CommissionerUnited States Tax Court · 1957
19 more not listed; retrieve them via the Exa API.