Gaylord v. Commissioner
United States Tax Court
1. The Civil Code of California, by amendment made in 1931, provides that, unless expressly made irrevocable by the instrument creating it, every voluntary trust (not created prior to the amendment) shall be revocable by the trustor. In 1935 the petitioners, residents of California, decided to make gifts to their two daughters and to effectuate the gifts by creating an irrevocable trust of which the petitioners would be trustees and the daughters the beneficiaries.
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1. The Civil Code of California, by amendment made in 1931, provides that, unless expressly made irrevocable by the instrument creating it, every voluntary trust (not created prior to the amendment) shall be revocable by the trustor. In 1935 the petitioners, residents of California, decided to make gifts to their two daughters and to effectuate the gifts by creating an irrevocable trust of which the petitioners would be trustees and the daughters the beneficiaries. Petitioners requested their counsel to prepare an instrument to carry out their purpose. The instrument prepared and executed did…
1Opinion of the Court
Turner, Judge:
The respondent determined the following deficiencies in income tax against the petitioners for the years indicated:
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The questions presented are the correctness of the respondent’s action (1) in determining that the income for the years 1936 through 1939 of a trust created by petitioners, and of which they were trustees, was taxable to petitioners for said years; (2) in determining that the basis for computing gain on certain corporate stock sold by petitioners and the trust during 1936 through 1939 was $2.83542 per share; (3) in disallowing deductions of $5,076.11…
2Cases cited3 opinions
- Touli v. Santa Cruz County Title Co.California Court of Appeal · 1937
- Enos v. StewartCalifornia Supreme Court · 1902
- Robertson v. MelvilleCalifornia Court of Appeal · 1923
3Cited by29 opinions
- Fono v. CommissionerUnited States Tax Court · 1982
- Gaylord v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1946
- Flitcroft v. CommissionerUnited States Tax Court · 1962
- Estate of Hill v. CommissionerUnited States Tax Court · 1975
- Newman v. CommissionerUnited States Tax Court · 1953
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