First National Bank v. Commissioner of Corporations & Taxation

This is a complaint for abatement of part of an income tax assessed upon the excess of gains over losses on sales by a trustee. The trustee, under a trust agreement made' on September 8, 1927, sold between that date and December 31, 1927, certain securities of the trust. The’ trust is what is known as a funded life insurance trust. The donor transferred insurance policies on his life and, in addition, certain securities of which the net income was to be used during the life of the donor, as far as necessary, to pay the premiums on the policies. *585the excess income to accumulate, but with power,…