Bensel v. Commissioner
United States Board of Tax Appeals
A father and son had been estranged for many years. The father was the majority stockholder of a corporation. The son was a valuable employee of the corporation. The father, in order to satisfy the demands of the son and retain his services for the corporation, gave the son an option to purchase his stock at his death at a price which was high in relation to current sales. The agreement could be and was changed by the mutual consent of the two.
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A father and son had been estranged for many years. The father was the majority stockholder of a corporation. The son was a valuable employee of the corporation. The father, in order to satisfy the demands of the son and retain his services for the corporation, gave the son an option to purchase his stock at his death at a price which was high in relation to current sales. The agreement could be and was changed by the mutual consent of the two. The son exercised the option and bought the stock at his father's death. Held, the excess of the fair market value of the stock at date of death over…
1Opinion of the Court
*251OPINION.
Murdock :
The Commissioner contends that the stipulated value at the date of death of the 50,830 shares of common stock of Driver-Harris Co. was properly included in the decedent’s gross estate. His first contention is that section 302 (d) of the Revenue Act of 1926 is authority for including these shares. It provides that the value of the gross estate shall include the value at the time of death of all property “to the extent of any interest therein of which the decedent has at any time made a transfer, by trust or otherwise, where the enjoyment thereof was subject at the date of his…
2Cases cited4 opinions
- United States v. WellsSupreme Court of the United States · 1931
- Helvering v. City Bank Farmers Trust Co.Supreme Court of the United States · 1935
- Helvering v. SalvageSupreme Court of the United States · 1936
- Helvering v. HelmholzSupreme Court of the United States · 1935
3Cited by28 opinions
- Estate of Reynolds v. CommissionerUnited States Tax Court · 1970
- Gregory v. CommissionerUnited States Tax Court · 1963
- Estate of Bischoff v. CommissionerUnited States Tax Court · 1977
- Estate of True v. CommissionerCourt of Appeals for the Tenth Circuit · 2004
- United States v. Richard S. Righter, of the Estate of Edna Beaham Mersereau, DeceasedCourt of Appeals for the Eighth Circuit · 1968
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