Gramm v. Commissioner
United States Tax Court
Decedent created a trust with income to herself for life. The trustees were a corporate trustee and decedent's two children. The corporate trustee had the power to invade the corpus for the comfort, education, maintenance, or support of decedent. The respondent determined the transfer in trust was subject to a gift tax.
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Decedent created a trust with income to herself for life. The trustees were a corporate trustee and decedent's two children. The corporate trustee had the power to invade the corpus for the comfort, education, maintenance, or support of decedent. The respondent determined the transfer in trust was subject to a gift tax. Held, no complete taxable transfer was effected by the deed of trust since the corpus might have been totally depleted by the time of decedent's death without the consent of any adverse party.
1Opinion of the Court
OPINION.
Rice, Judge:
The sole issue is whether this transfer in trust by decedent in May 1946 is taxable as a gift under section 1000 of the Internal Revenue Code.1
Regulations 108, sec. 86.3, provides, in part, as follows:
As to any property, or part thereof or interest therein, of which the donor has so parted with dominion and control as to leave him no power to change the disposition thereof, whether for his own benefit or for the benefit of another, the gift is complete. But if upon a transfer of property (whether in trust or otherwise) the donor reserves any power over the disposition…
2Cases cited11 opinions
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- Merchants Nat. Bank of Boston v. CommissionerSupreme Court of the United States · 1943
- Herzog v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1941
- Toeller v. CommissionerUnited States Tax Court · 1946
- Blunt v. KellyCourt of Appeals for the Third Circuit · 1942
6 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Estate of Holtz v. CommissionerUnited States Tax Court · 1962
- Commissioner of Internal Revenue v. Sarah Gilkey Vander Weele, Commissioner of Internal Revenue v. Frederick Vander WeeleCourt of Appeals for the Sixth Circuit · 1958
- Vander Weele v. CommissionerUnited States Tax Court · 1956
- Outwin v. CommissionerUnited States Tax Court · 1981
- Clement v. SmithDistrict Court, E.D. Pennsylvania · 1958
4 more not listed; retrieve them via the Exa API.