Wolder v. Commissioner
United States Tax Court
Petitioner and decedent, during decedent's lifetime, entered into an agreement whereby petitioner undertook to perform legal services for decedent without charge and decedent undertook to leave him certain assets in her will. The services were rendered and the agreed provision was contained in decedent's last will.
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Petitioner and decedent, during decedent's lifetime, entered into an agreement whereby petitioner undertook to perform legal services for decedent without charge and decedent undertook to leave him certain assets in her will. The services were rendered and the agreed provision was contained in decedent's last will. Held, petitioner received the benefits under the will as compensation for services, taxable under sec. 61, and not as a bequest, excludable from gross income under sec. 102(a), I.R.C. 1954. Held, further, petitioner constructively received specific shares of stock from decedent on…
1Dissent
Quealt, /.,
dissenting: Section 102(a) exempts from tax, property acquired by bequest. It cannot be disputed that under New York law the securities and cash which the majority would tax as income to the petitioner were acquired by the petitioner by bequest pursuant to the will of Marguerite K. Boyce. The Surrogate’s Court so held when the residuary legatee sought to compel the petitioner to qualify as a claimant against the estate.
The bequest was made in fulfillment of an agreement whereby petitioner was to render to the decedent such legal services as the decedent might require during her…
2Cases cited7 opinions
- United States v. MerriamSupreme Court of the United States · 1923
- Ethel West Cotnam v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Cotnam v. CommissionerUnited States Tax Court · 1957
- Davies v. CommissionerUnited States Tax Court · 1954
- Henderson v. Washington, Marlboro & Annapolis Motor Lines, Inc.Court of Appeals for the D.C. Circuit · 1942
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