Backus v. Commissioner
United States Tax Court
1. Standish and Lotta Backus created a single trust in 1924, naming their 5 children as beneficiaries. The single trust was divided into 5 separate trusts, under the indenture provisions, on April 5, 1940, when the eldest child became 30 years of age. Until April 5, 1940, the trustee, could determine the amounts of income to be paid or used for any one or all of the beneficiaries.
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1. Standish and Lotta Backus created a single trust in 1924, naming their 5 children as beneficiaries. The single trust was divided into 5 separate trusts, under the indenture provisions, on April 5, 1940, when the eldest child became 30 years of age. Until April 5, 1940, the trustee, could determine the amounts of income to be paid or used for any one or all of the beneficiaries. Held, that because of this power to shift distribution of income, the trust income is taxable to the grantors under section 22 (a) during the taxable years up to April 5, 1940, under the Stockstrom case. 2. Held,…
1Opinion of the Court
Estate of Standish Backus, Deceased, Lotta B. Backus and Detroit Trust Company, Executors, Petitioner, v. Commissioner of Internal Revenue, Respondent. Lotta B. Backus, Petitioner, v. Commissioner of Internal Revenue, Respondent
Backus v. Commissioner
Docket Nos. 5280, 5281
United States Tax Court
6 T.C. 1036; 1946 U.S. Tax Ct. LEXIS 197;
May 9, 1946, Promulgated
Decisions will be entered under Rule 50.
1. Standish and Lotta Backus created a single trust in 1924, naming their 5 children as beneficiaries. The single trust was divided into 5 separate trusts, under the indenture provisions, on April 5,…
Also in this document: Dissent.
2Cases cited6 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Newman v. CommissionerUnited States Tax Court · 1943
- Stockstrom v. CommissionerUnited States Tax Court · 1944
- Newman v. CommissionerUnited States Tax Court · 1945
- Backus v. CommissionerUnited States Tax Court · 1946
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