Beggs v. Commissioner
United States Tax Court
In 1934 petitioner conveyed property in trust to his brother for the benefit of his minor children. In 1935, by separate instrument, petitioner conveyed other property to himself and his brother in trust for the benefit of his minor children. Petitioner consistently treated the instruments as creating one trust, although not specifically authorized in the trust instruments.
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In 1934 petitioner conveyed property in trust to his brother for the benefit of his minor children. In 1935, by separate instrument, petitioner conveyed other property to himself and his brother in trust for the benefit of his minor children. Petitioner consistently treated the instruments as creating one trust, although not specifically authorized in the trust instruments. Part of the income of the trust property was used for the support, education, and maintenance of petitioner's minor children; part was used to pay premiums on insurance taken out by petitioner on his own life, which…
1Opinion of the Court
OPINION.
ARUndell, Judge'.
The principal issue presented for decision is whether or not the income of the trust or trusts created by petitioner George Beggs by instruments dated July 9, 1934, and December 20, 1935, may be treated as the community income of petitioners despite the transfer in trust, under section 22(a) of the Revenue Acts of 1936 and 1938 and the Internal Revenue Code, and under the principle of Helvering v. Clifford, 309 U. S. 331. As stated in the Clifford case, the issue is whether the grantor, after the trust has been established, may still be treated as the owner of the…
2Cases cited3 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. StuartSupreme Court of the United States · 1942
- Banfield v. CommissionerUnited States Tax Court · 1944
3Cited by1 opinion
- Beggs v. CommissionerUnited States Tax Court · 1945