Plunkett v. Commissioner
United States Board of Tax Appeals
1. The petitioner is the life beneficiary of a testamentary trust. Certain securities delivered to the trustee by the executor were valued for estate tax purposes at $392,750. In 1929 the trustee, in violation of the terms of the will creating the trust, exchanged these securities for other securities. By court order the trustee was required to substitute therefor in the principal account of the trust $500,000 cash.
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1. The petitioner is the life beneficiary of a testamentary trust. Certain securities delivered to the trustee by the executor were valued for estate tax purposes at $392,750. In 1929 the trustee, in violation of the terms of the will creating the trust, exchanged these securities for other securities. By court order the trustee was required to substitute therefor in the principal account of the trust $500,000 cash. By decree of the Probate Court dated October 9, 1934, the trustee was ordered to transfer $70,000 from the principal of the trust fund to income account and to pay that amount…
1Opinion of the Court
*706OPINION.
Smith:
The principal issue in this case is whether the petitioner is liable to income tax for 1934 in respect of the $70,000 which the Probate Court ordered the trustee on October 9, 1934, to pay to him “forthwith.” The petitioner contends that this amount was a payment of principal and not of distributable income; that he received this amount by virtue of his rights under the will of his father as construed by the Probate Court, and that the amount was property acquired by bequests, devise, or inheritance and as such is not liable to income tax in his hands..Section 161 (a) of the…
2Cases cited14 opinions
- Lyeth v. HoeySupreme Court of the United States · 1938
- Freuler v. HelveringSupreme Court of the United States · 1934
- Irwin v. GavitSupreme Court of the United States · 1925
- Lucas v. Pilliod Lumber Co.Supreme Court of the United States · 1930
- Burnet v. WhitehouseSupreme Court of the United States · 1931
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3Cited by47 opinions
- Cupp v. CommissionerUnited States Tax Court · 1975
- Vaira v. CommissionerUnited States Tax Court · 1969
- White v. CommissionerUnited States Tax Court · 1979
- Brown v. CommissionerUnited States Tax Court · 1961
- Bayou Verret Land Co. v. CommissionerUnited States Tax Court · 1969
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