Clement v. Commissioner
United States Tax Court
Where trustees of a testamentary trust made unauthorized loans totaling $ 202,500 from the trust corpus to the life beneficiary, and the beneficiary repaid only $ 163,500 of the advances during her life, held, upon the facts, that the trustees had a valid claim under local law to recover the balance of $ 39,000 from the life beneficiary's estate, which was deductible under section 812 (b) of the Internal Revenue Code in computing her estate tax.
1Opinion of the Court
OPINION.
Hill, Judge:
Trustees of the testamentary trust of Stephen M. Clement made payments out of trust corpus totaling $202,500 to decedent, Carolyn J. Clement, during the years from 1919 through 1939. She in turn paid the trust a total of $163,500 over the period from 1920 through 1941. The sole question for our determination is whether the assignees of the surviving trustees of the Stephen M. Clement trust had a valid claim for the balance of $39,000 against decedent’s estate which the latter might deduct under section 812 (b) of the code in computing its estate tax. By the express…
2Cases cited6 opinions
- Blair v. CommissionerSupreme Court of the United States · 1937
- Freuler v. HelveringSupreme Court of the United States · 1934
- Moss v. . CohenNew York Court of Appeals · 1899
- In re the Estate of JonesNew York Surrogate's Court · 1935
- In re the Estate of WellsNew York Surrogate's Court · 1937
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Clement v. CommissionerUnited States Tax Court · 1949