Wemyss v. Commissioner
United States Tax Court
Pursuant to antenuptial agreement between petitioner and his intended wife, he transferred to her 13,139 shares of stock in consideration for her promise to marry him, and to compensate her for the loss of income under two trusts created by her former husband.
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Pursuant to antenuptial agreement between petitioner and his intended wife, he transferred to her 13,139 shares of stock in consideration for her promise to marry him, and to compensate her for the loss of income under two trusts created by her former husband. Held: (1) The transfer was made for less than an adequate and full consideration in money or money's worth and was subject to gift tax under section 503 of Revenue Act of 1932. (2) Marriage, as a consideration, is not measurable in money or money's worth and the amount taxable as a gift is the value of the property transferred. (3)…
1Opinion of the Court
OPINION.
Mellott. Judge:
The sole issue is whether the transfer of the stock, the value of which is not controverted, constituted a taxable gift. The applicable provisions of the statute are shown in the margin.1
The parties agree that the transfer was made in consideration of the promise of marriage by petitioner’s prospective wife and, as stated in the contract, to compensate her for the loss of income which she had been receiving under the trusts created by her first husband as well as “to provide for and maintain her for so long as she may live in keeping with her station in life.” We agree…
2Cases cited9 opinions
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- Helvering v. WinmillSupreme Court of the United States · 1938
- Helvering v. City Bank Farmers Trust Co.Supreme Court of the United States · 1935
- Smith v. ShaughnessySupreme Court of the United States · 1943
- Robinette v. HelveringSupreme Court of the United States · 1943
4 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Commissioner v. WemyssSupreme Court of the United States · 1945
- Chase Nat'l Bank of New York v. CommissionerUnited States Tax Court · 1953
- Merrill v. FahsSupreme Court of the United States · 1945
- Merrill v. FahsSupreme Court of the United States · 1945
- Taurog v. CommissionerUnited States Tax Court · 1948
2 more not listed; retrieve them via the Exa API.