Hexter v. Commissioner
United States Board of Tax Appeals
1. The petitioner set up an irrevocable trust, with his wife as sole beneficiary and cotrustee with him, and with no rights in the petitioner to corpus or income. No provision was made for payment of trust income upon life insurance premiums or upon petitioner's obligations.
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1. The petitioner set up an irrevocable trust, with his wife as sole beneficiary and cotrustee with him, and with no rights in the petitioner to corpus or income. No provision was made for payment of trust income upon life insurance premiums or upon petitioner's obligations. The wife had for three years been paying premiums upon life insurance policies assigned absolutely to her by the trustor, and after the formation of the trust she continued to pay from a bank account into which the trust income was deposited both the insurance premiums and certain household expenses. Held, that trust…
1Opinion of the Court
*489OPINION.
Disney:
The prime question presented to us in this proceeding is whether the petitioner is taxable upon the income of a trust set up by him. The deficiency notice recites in that respect, in substance, that the income could be and was used to discharge the trustor’s obligations and to pay insurance premiums on policies on his life; therefore it is held that the trustor is subject to tax on the income under section 167 (a) (3) and section 22 (a) of the Eevenue Act of 1936. The latter contains the familiar general “definition” or statement as to what is included in income, and need not…
2Cases cited3 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Burnet v. WellsSupreme Court of the United States · 1933
3Cited by6 opinions
- Fred W. Amend Co. v. CommissionerUnited States Tax Court · 1970
- Ballard v. CommissionerUnited States Board of Tax Appeals · 1942
- Fred W. Amend Co. v. CommissionerUnited States Tax Court · 1970
- Hexter v. CommissionerUnited States Board of Tax Appeals · 1942
- Low v. CommissionerUnited States Tax Court · 1944
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