Wheelock v. Commissioner
United States Tax Court
Prior to the taxable years, petitioner created three irrevocable trusts for the benefit of each of his three minor children. He appointed his wife and a trust company as trustees. He gave to each trust shares of stock in a corporation, the Ward Wheelock Co., in which he and his wife owned all of the stock. Subsequently, his wife gave part of her stock to each trust. The trusts then owned a majority of the stock.
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Prior to the taxable years, petitioner created three irrevocable trusts for the benefit of each of his three minor children. He appointed his wife and a trust company as trustees. He gave to each trust shares of stock in a corporation, the Ward Wheelock Co., in which he and his wife owned all of the stock. Subsequently, his wife gave part of her stock to each trust. The trusts then owned a majority of the stock. The income of the trusts is payable to the beneficiaries when they become 25 years of age (or at 21 if settlor is then deceased). Each trust is to terminate when the beneficiary…
1Opinion of the Court
OPINION.
Disney, Judge:
As seen from the facts above set forth, the Commissioner based the determination of deficiency upon section 22 (a) of the Internal Revenue Code and the powers of the petitioner under the trust instrument to control and manage the trust property and his retention of the substance of ownership of the principal, “due to the provision * * * that delivery of the proxies to vote the stock was to be made, only to your wife or to you, during the lifetime of each of you, and also that no stock * * * could be sold without the consent in writing of your wife or yourself”; and on…
2Cases cited9 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Helvering v. StuartSupreme Court of the United States · 1942
- Helvering v. Coleman-Gilbert AssociatesSupreme Court of the United States · 1935
- Cartinhour v. CommissionerUnited States Tax Court · 1944
4 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Early v. AtkinsonCourt of Appeals for the Fourth Circuit · 1949
- Anderson v. CommissionerUnited States Tax Court · 1947
- Herberts v. CommissionerUnited States Tax Court · 1948
- Blakeslee v. CommissionerUnited States Tax Court · 1946
- Hemphill v. CommissionerUnited States Tax Court · 1947
7 more not listed; retrieve them via the Exa API.