United States of America, Plaintiff-Appellant-Cross v. Harris Trust & Savings Bank, Defendants-Appellees-Cross

SPRECHER, Circuit Judge.

The primary question raised by this appeal is whether the district court erred in holding that at her death decedent’s interest in a trust established by her grandfather was not includable in her estate for federal estate tax purposes.

Gertrude Witbeck Hanlin (“decedent”) died testate on April 11, 1952, survived by five children. At the time of her death, decedent was the sole surviving income beneficiary of a trust created under the will of her grandfather, Henry Witbeck.

Except for her interest in the trust estate, decedent had assets of only nominal value which were…