Clark v. Commissioner
United States Tax Court
Held: 1. Gifts of Arthur W. Clark's principal interests in Clifford trusts to the income beneficiaries thereof were not gifts of future interests and therefore were eligible for the annual gift tax exclusion of $ 3,000 per donee provided by sec. 2503(b), I.R.C. 1954. 2. Petitioners' failure to prove Virginia Clark's consent to gift-splitting precludes half of Arthur W. Clark's 1964 gifts from being considered as having been made by her under the gift-splitting provisions of…
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Held: 1. Gifts of Arthur W. Clark's principal interests in Clifford trusts to the income beneficiaries thereof were not gifts of future interests and therefore were eligible for the annual gift tax exclusion of $ 3,000 per donee provided by sec. 2503(b), I.R.C. 1954. 2. Petitioners' failure to prove Virginia Clark's consent to gift-splitting precludes half of Arthur W. Clark's 1964 gifts from being considered as having been made by her under the gift-splitting provisions of sec. 2513, I.R.C. 1954. 3. Respondent is not barred by the statute of limitations or estopped from redetermining the…
1Opinion of the Court
OPINION
The first issue is whether Arthur W. Clark’s gifts of principal interests in stocks he had earlier conveyed to four Clifford trusts to the income beneficiaries thereof constituted gifts of future interests. Section 2503(b) allows an annual gift tax exclusion of $3,000 per donee, but “gifts of future interests in property” do not qualify.8 Petitioners contend the gifts were not gifts of future interests, while respondent claims the contrary is true.
Section 25.2503-3(a), Gift Tax Regs., defines “future interests” as follows:
“Future interest” is a legal term, and includes reversions,…
2Cases cited33 opinions
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- United States v. PelzerSupreme Court of the United States · 1941
- Fondren v. CommissionerSupreme Court of the United States · 1945
- Commissioner v. DisstonSupreme Court of the United States · 1945
- Helvering v. HutchingsSupreme Court of the United States · 1941
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3Cited by2 opinions
- Clark v. CommissionerUnited States Tax Court · 1975
- Estate of McCampbell v. CommissionerUnited States Tax Court · 1991