Estate of Gerson v. Comm'r
United States Tax Court
G created the Benjamin Gerson Trust which became irrevocable when G died in 1973. The trust provided for the creation of a marital trust (the trust) for the benefit of G's wife, D. The trust conferred upon D a general power of appointment over the trust property. D died in October 2000 and left a will under which she exercised the power of appointment in favor of her grandchildren.
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G created the Benjamin Gerson Trust which became irrevocable when G died in 1973. The trust provided for the creation of a marital trust (the trust) for the benefit of G's wife, D. The trust conferred upon D a general power of appointment over the trust property. D died in October 2000 and left a will under which she exercised the power of appointment in favor of her grandchildren. R determined that the transfer to D's grandchildren was subject to generation-skipping transfer (GST) tax. P contends (1) sec. 26.2601-1(b)(1)(i), GST Tax Regs., is invalid, and (2) the transfer is excepted from…
1ConcurrenceSwift, J.
The majority opinion is too circumspect in discussing the erroneous interpretations of section 1433(b)(2)(A) of the Tax Reform Act of 1986 (TRA 1986), Pub. L. 99-514, 100 Stat. 2731, by the Courts of Appeals in Simpson v. United States, 183 F.3d 812 (8th Cir. 1999), and in Bachler v. United States, 281 F.3d 1078 (9th Cir. 2002).
In the above opinions, the Courts of Appeals for the Eighth and Ninth Circuits make at least two serious mistakes: (1) They merge and confuse the relevant transfers that are to be considered under the grandfather exception of section 1433(b)(2)(A); and (2) they…
2Cases cited8 opinions
- National Cable & Telecommunications Assn. v. Brand X Internet ServicesSupreme Court of the United States · 2005
- E. Norman Peterson Marital Trust, Chemical Bank, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1996
- Peterson Marital Trust v. CommissionerUnited States Tax Court · 1994
- Swallows Holding, Ltd. v. Comm'rUnited States Tax Court · 2006
- John M. Simpson and Sarah S. Dean, Trustees of the Grover M. Simpson Testamentary Trust a v. United StatesCourt of Appeals for the Eighth Circuit · 1999
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