Ayer v. Commissioner
United States Board of Tax Appeals
1. Petitioner, prior to the taxable year, created separate trusts for each of his five minor children. He named himself and his wife as trustees. The trusts were to last for the life of the respective beneficiaries. No power to revoke the trusts was reserved by the grantor or vested in anyone else.
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1. Petitioner, prior to the taxable year, created separate trusts for each of his five minor children. He named himself and his wife as trustees. The trusts were to last for the life of the respective beneficiaries. No power to revoke the trusts was reserved by the grantor or vested in anyone else. Held, the trusts were irrevocable and the income of the trusts is not taxable to petitioner under section 166, Revenue Act of 1934. 2. Each of the trust indentures provided that the trustees "may pay to the beneficiary of the trust so much of the net income as they may deem necessary for his…
1Opinion of the Court
*150OPINION.
Black:
In taxing the income of the five children’s trusts to petitioner the Commissioner, in his deficiency notice, relied upon section 166 of the Revenue Act of 1934 and article 166-1 (b) (2) of Regulations 86. At the hearing of this proceeding the Commissioner, however, amended his answer and stated therein, among other things, as follows:
* * * In support of said determination the respondent relies not only on the provisions of Section 166 but also on Sections 167 and 22 (a) of the Revenue Act of 1934.
The petitioner denies that he is subject to tax under either of the named sections…
2Cases cited4 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. FullerSupreme Court of the United States · 1940
- Thorp v. LundMassachusetts Supreme Judicial Court · 1917
- Coolidge v. LoringMassachusetts Supreme Judicial Court · 1920
3Cited by9 opinions
- Elwin Donald Brenneman, Margaret Zoe Hemmingson and Barbara Esterbrook v. Nancy Ruth Hockett Bennett and Elizabeth Anne Hockett MayerCourt of Appeals for the Eighth Circuit · 1970
- Amory v. CommissionerUnited States Tax Court · 1946
- Ayer v. CommissionerUnited States Board of Tax Appeals · 1941
- Bloomingdale v. CommissionerUnited States Tax Court · 1944
- Bodell v. CommissionerUnited States Tax Court · 1943
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