Estate of Gilman v. Commissioner
United States Tax Court
In 1948, decedent owned 60 percent of the common stock and a substantial block of the preferred stock of a corporation. In that year he transferred the common stock to a trust of which he was one of three trustees.
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In 1948, decedent owned 60 percent of the common stock and a substantial block of the preferred stock of a corporation. In that year he transferred the common stock to a trust of which he was one of three trustees. He continued to serve as a trustee of that trust and as a director and chief executive officer of the corporation until he died in 1967. Held, decedent did not retain the enjoyment of the entrusted stock or the right to designate the person or persons who would enjoy the stock or the income therefrom within the meaning of sec. 2036(a)(1) or 2036(a)(2), I.R.C. 1954.
1Opinion of the Court
OPINION
Under section 2036(a),2 property transferred by a decedent is included in his gross estate if, under the transfer, the decedent retained for his life or a period which did not in fact end before his death (1) the “enjoyment” of the property or (2) the right, either alone or in conjunction with any person, to designate the persons who shall enjoy the property or the income therefrom. Respondent relies upon these provisions to include the transferred Gilman Paper stock in decedent’s gross estate.3
Section 2036(a) reflects a “legislative policy of subjecting to tax all property which has…
2Cases cited27 opinions
- Commissioner v. Estate of ChurchSupreme Court of the United States · 1949
- United States v. ByrumSupreme Court of the United States · 1972
- Estate of Spiegel v. CommissionerSupreme Court of the United States · 1949
- Commissioner v. Estate of HolmesSupreme Court of the United States · 1946
- United States v. Estate of GraceSupreme Court of the United States · 1969
22 more not listed; retrieve them via the Exa API.
3Cited by30 opinions
- Estate of Reichardt v. CommissionerUnited States Tax Court · 2000
- La Fargue v. CommissionerUnited States Tax Court · 1979
- Estate of Charles Gilman, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1976
- Estate of Wyly v. CommissionerCourt of Appeals for the Fifth Circuit · 1980
- Bennett v. CommissionerUnited States Tax Court · 1982
25 more not listed; retrieve them via the Exa API.