Freedman v. Commissioner

In the taxable year petitioner was under a legal obligation to support his two children, who were under 18 years of age, and actually furnished their entire support out of his own funds. In that year his two children were the beneficiaries of two trusts under which the trustee had a discretionary power either to distribute the income to them or to accumulate the income, and the discretionary power was exercised by the trustee so that the income of the trusts was accumulated. Held, that in the taxable year petitioner's two children were "dependent upon" him within the meaning of section…