Hormel v. Commissioner
United States Board of Tax Appeals
Income of trusts payable to the grantor's wife for life, with reversion to the grantor or his heirs, and income of trusts for a short period of years payable to the grantor's wife, as guardian, but "for the use and benefit" of their minor children, held, not taxable to the grantor in the absence of a requirement that the income be used to support, maintain, or educate the beneficiaries.
1Opinion of the Court
OPINION.
Murdock:
Tbe Commissioner determined deficiencies as follows:
J. C. Hormel
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The petitioners created several trusts in 1934 and filed gift tax returns reporting tbe transfers as subject to gift tax. Thereafter they did not include in their income the income of the trusts, which, under the terms of the trusts, was payable to others. The Commissioner has determined deficiencies in gift tax due to an increased valuation of the stock transferred and, at the same time, he has included the income of the trusts as a part of the income of the grantors. The parties have agreed upon…
2Cases cited2 opinions
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Helvering v. CoxeySupreme Court of the United States · 1936
3Cited by7 opinions
- Helvering v. HormelCourt of Appeals for the Eighth Circuit · 1940
- Beck v. CommissionerUnited States Board of Tax Appeals · 1940
- Berolzheimer v. CommissionerUnited States Board of Tax Appeals · 1939
- Elmhirst v. CommissionerUnited States Board of Tax Appeals · 1940
- Goulder v. CommissionerUnited States Board of Tax Appeals · 1939
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