Wiedemann v. Commissioner
United States Tax Court
Pursuant to the provisions of a decree of divorce, petitioner established a trust, under the terms of which the net income is payable to his divorced wife for life, and upon her death, to their adult daughter with a power of appointment in the daughter, and further provisions for the benefit of the daughter's children in the event the power is not exercised. Held, the value of the remainder interest transferred to petitioner's adult daughter is taxable as a gift.
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Pursuant to the provisions of a decree of divorce, petitioner established a trust, under the terms of which the net income is payable to his divorced wife for life, and upon her death, to their adult daughter with a power of appointment in the daughter, and further provisions for the benefit of the daughter's children in the event the power is not exercised. Held, the value of the remainder interest transferred to petitioner's adult daughter is taxable as a gift. Secs. 1000, 1002, I. R. C. 1939. Held, further, the value of the remainder interest is not affected by the remote possibility that…
1Opinion of the Court
OPINION.
BRuce, Judge:
The question presented for determination herein is whether the value of a remainder interest transferred by petitioner to his adult daughter in a trust established by him pursuant to a decree of divorce, is taxable as a gift under sections 1000 and 1002 of the Internal Revenue Code of 1939.1
It has generally been held that property transferred by a taxpayer to discharge his obligation to support his minor children is a transfer for “adequate and full consideration in money or money’s worth,” and is not taxable as a gift. Roland M. Hooher, 10 T. C. 388, affd. 174 F. 2d 863.…
2Cases cited13 opinions
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- Burnet v. GuggenheimSupreme Court of the United States · 1933
- Harris v. CommissionerSupreme Court of the United States · 1950
- McMurtry v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1953
- Rosenthal v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1953
8 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Glen v. CommissionerUnited States Tax Court · 1966
- Keller v. CommissionerUnited States Tax Court · 1965
- Nelson v. CommissionerUnited States Tax Court · 1966
- Hartshorne v. CommissionerUnited States Tax Court · 1967
- Spruance v. CommissionerUnited States Tax Court · 1973
8 more not listed; retrieve them via the Exa API.