Allen v. Commissioner
United States Tax Court
1. In 1933, 1935, and 1941 petitioner made gifts in trust for the benefit of her granddaughter. The income of the trusts during the donee's minority was either to be used for her maintenance and support or accumulated, at the discretion of her parents or the trustees. After attaining her majority the donee was to receive the income for life and after attaining the age of 35 years could also withdraw the principal.
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1. In 1933, 1935, and 1941 petitioner made gifts in trust for the benefit of her granddaughter. The income of the trusts during the donee's minority was either to be used for her maintenance and support or accumulated, at the discretion of her parents or the trustees. After attaining her majority the donee was to receive the income for life and after attaining the age of 35 years could also withdraw the principal. If the donee should die before attaining the age of 21, leaving no children, the principal was to go to her mother if living, otherwise to the mother's heirs. Held, that the gifts…
1Opinion of the Court
OPINION.
Smith, Judge:
Our first question is whether the gifts in trust in 1933 and 1935 were gifts of future interests. The determination of the amount of the net gifts for the prior years is a necessary step, under section 502, Internal Revenue Code, in computing the gift tax liability for 1941. See Margaret A. C. Riter, 3 T. C. 301.
The respondent has determined that the 1933 and 1935 gifts were gifts of future interests and in computing the net taxable gifts for 1941 he has added back to the net gifts made in the preceding years the $5,000 exclusions claimed and erroneously allowed” in…
2Cases cited7 opinions
- United States v. PelzerSupreme Court of the United States · 1941
- Helvering v. HutchingsSupreme Court of the United States · 1941
- Du Pont v. CommissionerUnited States Tax Court · 1943
- Riter v. CommissionerUnited States Tax Court · 1944
- Hutchings v. CommissionerUnited States Tax Court · 1943
2 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Geller v. CommissionerUnited States Tax Court · 1947
- Wood v. CommissionerUnited States Tax Court · 1951
- Schuhmacher v. CommissionerUnited States Tax Court · 1947
- Allen v. CommissionerUnited States Tax Court · 1944
- Geller v. CommissionerUnited States Tax Court · 1947
5 more not listed; retrieve them via the Exa API.