Bishop v. Commissioner
United States Tax Court
Petitioners, husband and wife, simultaneously created trusts of approximately equal value for each other for life with remainder over; each life beneficiary was given a general testamentary power of appointment of the corpus in lieu of the remainders; income was distributable at the discretion of the corporation trustee, whom the life beneficiary was given the power to change at will from time to time to any other corporate trustee; and prior to and outside the indentures,…
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Petitioners, husband and wife, simultaneously created trusts of approximately equal value for each other for life with remainder over; each life beneficiary was given a general testamentary power of appointment of the corpus in lieu of the remainders; income was distributable at the discretion of the corporation trustee, whom the life beneficiary was given the power to change at will from time to time to any other corporate trustee; and prior to and outside the indentures, the trustee agreed with petitioners to pay the income at the request of the life beneficiary. Held, the income of each…
1Opinion of the Court
OPINION.
Hill, Judge-.
The respondent contends that the undistributed income of these trusts was taxable to the petitioner-life beneficiaries under section 22 (a) of the Revenue Act of 1938 and the Internal Revenue Code, and also under sections 166 and 167, as reciprocal trusts.
Each of the petitioners, independently wealthy so that the approximately $250,000 in securities conveyed in trust by each was "but a small part of his or her estate, was made the first life beneficiary of the trust created by the other. Each petitioner was likewise given a general testamentary power of appointment over…
2Cases cited11 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Corliss v. BowersSupreme Court of the United States · 1930
- Reinecke v. Northern Trust Co.Supreme Court of the United States · 1929
6 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Stix v. CommissionerUnited States Tax Court · 1945
- Cowles v. CommissionerUnited States Tax Court · 1946
- Bishop v. CommissionerUnited States Tax Court · 1945
- Cowles v. CommissionerUnited States Tax Court · 1946
- Stix v. CommissionerUnited States Tax Court · 1945