Newlin v. Commissioner
United States Tax Court
Petitioners made gifts in trust during each of the taxable years, which provided equal life interests in the trust income for their three adult children.
Read the full summary
Petitioners made gifts in trust during each of the taxable years, which provided equal life interests in the trust income for their three adult children. The trust instrument gave only managerial powers to the trustees; and the trust could be terminated prior to the end of its term, only with unanimous consent of the trustees and all then-living children of the petitioner-donors (which would include each of the then living beneficiaries who received a life interest). The parties agreed that the income interest of each life beneficiary was a "present interest." But the respondent determined…
1Opinion of the Court
OPINION.
Pierce, Judge:
Eespondent determined deficiencies in gift taxes of the petitioners, as follows:
[[Image here]]
The cases were consolidated for trial.
The sole issue for decision is whether, in determining the total amount of taxable gifts made by each of the petitioners for each year involved, there should be allowed for each year, pursuant to section 1003 (b) (3) of the 1939 Code,1 an exclusion of not to exceed $3,000 in respect of the “present interest” of each trust beneficiary for whose benefit a gift in trust was made. The answer to this problem will depend upon whether such “present…
2Cases cited13 opinions
- Helvering v. HutchingsSupreme Court of the United States · 1941
- McMurtry v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1953
- Evans v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1952
- Brody v. CommissionerUnited States Tax Court · 1952
- Kniep v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1949
8 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Pettus v. CommissionerUnited States Tax Court · 1970
- Raymond J. Funkhouser's Trusts v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Schayek v. CommissionerUnited States Tax Court · 1960
- Van Den Wymelenberg v. United StatesDistrict Court, E.D. Wisconsin · 1967
- Jolley v. United StatesDistrict Court, D. South Carolina · 1966
3 more not listed; retrieve them via the Exa API.