Sunderland v. Commissioner
United States Tax Court
In 1934 petitioner's husband created two trusts, making the children income beneficiaries for life. The trust indentures provide that the income is to be paid to or applied to the use of the children and that the trustee may pay the income to petitioner during the minority of the children. The trustee is not obligated to see that proper application is made of the income paid to petitioner.
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In 1934 petitioner's husband created two trusts, making the children income beneficiaries for life. The trust indentures provide that the income is to be paid to or applied to the use of the children and that the trustee may pay the income to petitioner during the minority of the children. The trustee is not obligated to see that proper application is made of the income paid to petitioner. Prior to 1940 petitioner delivered securities of her own to the trustee of the trusts created by the husband in 1934. She directed the trustee to hold the securities under those trusts. In the taxable year…
1Opinion of the Court
OPINION.
HaRRON, Judge:
The only question is whether the income from the securities which petitioner had delivered to Fletcher in prior years is taxable to petitioner. Respondent has determined that it was taxable to her. Petitioner contends that the securities in question were held by Fletcher subject to the provisions of the trust indentures executed by her husband; that the income paid to her was impressed with a trust, so that she was a subfiduciary for her children with respect to such income, and that, consequently, she is not taxable on the income under section 167 (a) (2).
Petitioner, of…
2Cases cited2 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Douglas v. WillcutsSupreme Court of the United States · 1935
3Cited by1 opinion
- Sunderland v. CommissionerUnited States Tax Court · 1944