Estate of Webster v. Commissioner
United States Tax Court
Decedent's husband gave her 4,000 shares of stock in January of 1922. Decedent transferred these shares to a trust, created for her four children, in December of 1923. The trust indenture stated that decedent could terminate the trust with the consent of two of her children. At decedent's death, only one of her children was living. Decedent borrowed money to purchase United States Treasury bonds 3 1/2's of 11/15/98, which later were used to pay part of her estate tax.
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Decedent's husband gave her 4,000 shares of stock in January of 1922. Decedent transferred these shares to a trust, created for her four children, in December of 1923. The trust indenture stated that decedent could terminate the trust with the consent of two of her children. At decedent's death, only one of her children was living. Decedent borrowed money to purchase United States Treasury bonds 3 1/2's of 11/15/98, which later were used to pay part of her estate tax. Held, petitioner has failed to carry its burden of proving that decedent's husband, not decedent, was the actual transferor of…
1Opinion of the Court
OPINION
I. Transferor of the Original Corpus of the 1923 Trust
In the main issue of this case, the second issue, we must decide that either additional estate tax is owing within the meaning of section 2038(a)(2) or that a gift was completed within the meaning of section 2511. In this first issue, we deal with a threshold issue, whether decedent was the transferor of the original corpus of the 1923 trust. If she was not, then we need not reach the second issue since sections 2038(a)(2)2 and 25113 would both be inapplicable and there would be neither additional estate tax nor any gift tax owing.
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2Cases cited24 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- Schmitz v. CommissionerUnited States Tax Court · 1968
- Estate of Smith v. CommissionerUnited States Tax Court · 1972
19 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Estate of Bahr v. CommissionerUnited States Tax Court · 1977
- Estate of Bailly v. CommissionerUnited States Tax Court · 1983
- Estate of Richardson v. CommissionerUnited States Tax Court · 1987
- Estate of Posen v. CommissionerUnited States Tax Court · 1980
- Estate of Harrison v. CommissionerUnited States Tax Court · 1987
11 more not listed; retrieve them via the Exa API.