Lowenstein v. Commissioner
United States Tax Court
Decedent created three trusts, each of which named one of his adult children a life beneficiary and himself the trustee. Upon the death of the life beneficiary the trust terminated and the corpus was to be distributed to persons other than decedent. He retained no express power of revocation and had no reversionary interest. Broad powers of management and control were vested in him as trustee.
Read the full summary
Decedent created three trusts, each of which named one of his adult children a life beneficiary and himself the trustee. Upon the death of the life beneficiary the trust terminated and the corpus was to be distributed to persons other than decedent. He retained no express power of revocation and had no reversionary interest. Broad powers of management and control were vested in him as trustee. Held, under the New York law, which governs the trusts, the powers granted the trustee do not constitute implied powers to revoke the trust or revest the corpus in the grantor and the trust income is…
1Opinion of the Court
OPINION.
Abnold, Judge:
These consolidated proceedings involve deficiencies in income tax of decedent Benjamin Lowenstein as follows:
Docket No. 111414, 1936_$62, 507. 91
Do_1938_ 51, 165. 30
Docket No. 104543, 1937_ 8, 479. 69
In Docket JNo. 104543 the respondent disallowed a deduction claimed by decedent for commissions paid by him on the sale of securities and commodities and determined a deficiency of $8,479.69 for 1937. In his answer respondent claims an increased deficiency of $73,326.51 on the theory that the income of three trusts created by decedent for his children was taxable to him. In…
2Cases cited5 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. StuartSupreme Court of the United States · 1942
- Helvering v. WoodSupreme Court of the United States · 1940
- Carrier v. . CarrierNew York Court of Appeals · 1919
- Spreckels v. CommissionerSupreme Court of the United States · 1942
3Cited by40 opinions
- Hall v. CommissionerCourt of Appeals for the Tenth Circuit · 1945
- Cherry v. CommissionerUnited States Tax Court · 1944
- Chertoff v. CommissionerUnited States Tax Court · 1946
- Jones v. CommissionerUnited States Tax Court · 1946
- Welch v. CommissionerUnited States Tax Court · 1947
35 more not listed; retrieve them via the Exa API.