Commissioner of Internal Revenue v. Allen

JONES, Circuit Judge.

The question in this case is whether a minor’s transfer of property, without valuable consideration, in trust for others, made prior to the effective date of the Gift Tax Act of 1932, is so inchoate and imperfect, because of the minor’s legal right to disaffirm during minority and for a reasonable period thereafter, as to render the transfer not taxable as a gift until the year in which the minor attained majority, having failed to disaffirm.

The Board of Tax Appeals, agreeing with the taxpayer’s contention, held that the transfer was complete as an executed gift at the…