Stone v. Stone

Dethmers, J..Plaintiffs are husband and-wife and the parents of 11-year-old twin children, Beverly Ann and Ronald Arthur Stone, defendants herein. On October 31, 1942, each of the plaintiffs owned an undivided half interest in a manufacturing business, as copartner's, and on that date they transferred a quarter interest to each of the children, making them copartners with the parents, each parent and child thereafter owning a quarter interest. The transfers were made for the purpose of lawfully minimizing income tax, the parents having been advised by competent tax consultants that a separate…