Jaynes v. Commissioner
United States Board of Tax Appeals
Under a testamentary trust the testator's two children were to receive income for life and upon their death the trust was to terminate, specific sums to be paid to each of their children, and the remainder to go to charity. The number of grandchildren living in the taxable year was not sufficient to exhaust the principal of the trust fund.
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Under a testamentary trust the testator's two children were to receive income for life and upon their death the trust was to terminate, specific sums to be paid to each of their children, and the remainder to go to charity. The number of grandchildren living in the taxable year was not sufficient to exhaust the principal of the trust fund. Held, that, under the presumption of possibility of additional issue being born, it cannot be determined what amount, if any, will ultimately go to charity, and that no part of the profit from the sale of the trust corpus can be treated as permanently set…
1Opinion of the Court
*261OPINION.
Arundell :
Under the provisions of the testamentary trust administered by these petitioners, the income was to be paid to the decedent’s two children for life, and upon the death of both the trust was to terminate and $25,000 of the corpus to be paid to each grandchild of the decedent, and the balance to specified charitable organizations. At the time of decedent’s death the value of the trust corpus was $391,940.82, and in the taxable year, 1929, it was $465,334.99.
The theory of petitioners is that only $50,000 of the corpus will ever be needed to pay the individual beneficiaries,…
2Cases cited4 opinions
- Humes v. United StatesSupreme Court of the United States · 1928
- Boston Safe Deposit & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Boston Safe Deposit & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Guaranty Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1933
3Cited by3 opinions
- Tracy v. CommissionerUnited States Board of Tax Appeals · 1934
- Canal National Bank v. United StatesDistrict Court, D. Maine · 1966
- Jaynes v. CommissionerUnited States Board of Tax Appeals · 1933