Welch v. Commissioner
United States Tax Court
1. Petitioner was the settlor of 4 irrevocable trusts for the benefit of his wife and 2 minor daughters, to which he conveyed certain shares of stock in a corporation in which he owned all the shares. He made himself trustee, with extensive administrative powers, but with no power to revest the income in himself or vary the share of any beneficiary in the income or corpus of the trust or use the trust income to discharge any of his own obligations.
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1. Petitioner was the settlor of 4 irrevocable trusts for the benefit of his wife and 2 minor daughters, to which he conveyed certain shares of stock in a corporation in which he owned all the shares. He made himself trustee, with extensive administrative powers, but with no power to revest the income in himself or vary the share of any beneficiary in the income or corpus of the trust or use the trust income to discharge any of his own obligations. He still retained ownership in his own right of a majority of the shares of the corporation and none of the shares of stock conveyed to the trusts…
1Opinion of the Court
OPINION.
Black, Judge:
This proceeding involves a deficiency in income tax for the calendar year 1941 in the amount of $47,008,116. The deficiency is the result of an addition of $67,500 to petitioner’s net income as disclosed by his return for 1941, which respondent, in a statement attached to the deficiency notice, explained as follows:
EXPLANATION OP ADJUSTMENT(a) It has been determined that the combined income from four trusts created by you on June 28, 1941, and from two trusts created by your wife, Mrs. Marian Edith Welch, on the same date, is taxable to you under the provisions of…
2Cases cited11 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Gannon v. . McGuireNew York Court of Appeals · 1899
- Green v. CommissionerUnited States Tax Court · 1946
- Lowenstein v. CommissionerUnited States Tax Court · 1944
6 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Tobin v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Fifth Circuit · 1950
- Herberts v. CommissionerUnited States Tax Court · 1948
- Tobin v. CommissionerUnited States Tax Court · 1948
- Herberts v. CommissionerUnited States Tax Court · 1948
- Tobin v. CommissionerUnited States Tax Court · 1948
3 more not listed; retrieve them via the Exa API.