First Trust & Deposit Co. v. Commissioner
United States Board of Tax Appeals
Petitioners' wards were remaindermen of a trust created in 1926 in the State of New York, where it was administered. The trust provided that, upon the death of the survivor of two life beneficiaries, the inheritance taxes against the estate of the settlor should be paid out of corpus and that the corpus, together with any accumulations thereon, be paid over to petitioners' wards in equal parts.
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Petitioners' wards were remaindermen of a trust created in 1926 in the State of New York, where it was administered. The trust provided that, upon the death of the survivor of two life beneficiaries, the inheritance taxes against the estate of the settlor should be paid out of corpus and that the corpus, together with any accumulations thereon, be paid over to petitioners' wards in equal parts. The life beneficiaries died simultaneously in 1929. The inheritance taxes were not all determined nor paid until August 1934. In May 1935, the trust instituted action for judicial settlement of its…
1Opinion of the Court
*111OPINION.
Leech:
Respondent bas included one-third of the trust income from the insurance trust for the years 1933, 1934, and 1935, in the income of each of the wards of these petitioners. He has also' refused to allow the trustee to deduct from the 1933 gross income, said to be distributable to the guardians of the three children, an amount paid as interest in 1933 on a Federal estate tax deficiency as well as amounts paid in 1933 on account of Federal estate taxes and New York inheritance taxes.
Petitioners assume that, because the proceeds of the insurance paid to the insurance trust were a…
2Cases cited3 opinions
- Freuler v. HelveringSupreme Court of the United States · 1934
- Deering v. PierceAppellate Division of the Supreme Court of the State of New York · 1912
- In re the Estate of ThomasNew York Surrogate's Court · 1929
3Cited by1 opinion
- First Trust & Deposit Co. v. CommissionerUnited States Board of Tax Appeals · 1940