TORRENS v. COMMISSIONER
United States Board of Tax Appeals
1. Where each of the present petitioners created trusts for the benefit of designated members of his family in certain corporate stocks standing in his name but held in escrow under option agreement, held that thereafter the dividend payments on such stocks and the proceeds from the sale of a block of such stock in the case of one petitioner, although made to and received in each case by these petitioners, represented income to the beneficiaries of the several trusts. 2.…
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1. Where each of the present petitioners created trusts for the benefit of designated members of his family in certain corporate stocks standing in his name but held in escrow under option agreement, held that thereafter the dividend payments on such stocks and the proceeds from the sale of a block of such stock in the case of one petitioner, although made to and received in each case by these petitioners, represented income to the beneficiaries of the several trusts. 2. DIVIDEND. - Where both common and preferred shares are outstanding when a dividend is declared upon voting common stock and…
1Opinion of the Court
*793OPINION.
Leech :
Respondent relies generally upon two positions. The first is that when these petitioners are said to have created trusts in common stock of the D. Emil Klein Co., they had no interest therein subject to disposition. The second and alternative position is that, assuming petitioners then had such an interest, the evidence does not establish the creation of a valid trust.
In the case of petitioner Torrens, it is argued that because of the conditions under which the 500 shares of common stock were issued to him in 1922, he could have no ownership of this stock until its delivery to…
2Cases cited15 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Bank of United States v. DandridgeSupreme Court of the United States · 1827
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- Luthy v. ReamIllinois Supreme Court · 1915
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3Cited by9 opinions
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