Herr v. Commissioner
United States Tax Court
Held, transfers to certain trusts for minor grandchildren do not qualify in any part for the $ 3,000 statutory exclusion under section 2503(b), I.R.C. 1954, without the benefit of section 2503(c). However, such transfers held to qualify for the exclusions by reason of section 2503(c) to the extent of income interests up to the majorities of the beneficiaries.
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Held, transfers to certain trusts for minor grandchildren do not qualify in any part for the $ 3,000 statutory exclusion under section 2503(b), I.R.C. 1954, without the benefit of section 2503(c). However, such transfers held to qualify for the exclusions by reason of section 2503(c) to the extent of income interests up to the majorities of the beneficiaries. The fact that the trusts also provided for gifts of corpus and for further gifts of income from majority up to the age of 30 which would not comply with the requirements of section 2503(c) does not deprive the income interests up to…
1Opinion of the Court
OPINION.
Naum, Judge:
In issue are gift tax deficiencies determined against petitioners, husband and wife, for 1955. The facts have been stipulated. The question for decision is whether each petitioner is entitled to a $3,000 exclusion under section 2503 of the 1954 Code in respect of a 1955 transfer to each of four trusts established for the benefit of petitioners’ minor grandchildren in 1954. The transfers in question were made by petitioner Eobert F. Herr; his wife is involved herein only because she consented in her gift tax return to have one-half of her husband’s gifts treated as having…
2Cases cited4 opinions
- Fondren v. CommissionerSupreme Court of the United States · 1945
- Commissioner v. DisstonSupreme Court of the United States · 1945
- Konner v. CommissionerUnited States Tax Court · 1961
- Hessenbruch v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1950
3Cited by27 opinions
- Messing v. CommissionerUnited States Tax Court · 1967
- Berzon v. CommissionerUnited States Tax Court · 1975
- Commissioner of Internal Revenue v. Arlean I. Herr, in No. 13,811, and Robert F. Herr, in No. 13,812Court of Appeals for the Third Circuit · 1962
- Konner v. CommissionerUnited States Tax Court · 1961
- Commissioner of Internal Revenue v. Josephine N. Thebaut and Charles R. Thebaut, Jr.Court of Appeals for the Fifth Circuit · 1966
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