Whiteley v. Commissioner
United States Board of Tax Appeals
1. Petitioner's wife loaned him $53,000 and a large amount of corporate stock, in order to satisfy calls made by his broker for margin. At a time when the situation as to the brokerage account appeared critical, petitioner and his wife consulted her father and the president of a bank, and placed themselves in their hands. At the request of the banker, the wife took out insurance on petitioner's life, and he executed a note in her favor and transferred corporate bonds to her.
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1. Petitioner's wife loaned him $53,000 and a large amount of corporate stock, in order to satisfy calls made by his broker for margin. At a time when the situation as to the brokerage account appeared critical, petitioner and his wife consulted her father and the president of a bank, and placed themselves in their hands. At the request of the banker, the wife took out insurance on petitioner's life, and he executed a note in her favor and transferred corporate bonds to her. The wife then transferred the bonds, note, and insurance policies in trust for petitioner, the trust instrument giving…
1Opinion of the Court
*408OPINION.
Issue 1.
Disney:
The major difference between the parties here is whether the form or the substance of the transaction should prevail; that is, whether petitioner or his wife should be treated here as the grantor of the trust. The gist of the petitioner’s argument is that his wife was the grantor both in substance and form, upon the ground that she received the bonds and note from him unconditionally. He contends that the situation here is no different from what it would be if the trust had been created by his wife out of property which had never belonged to him. Respondent insists upon…
2Cases cited7 opinions
- Higgins v. SmithSupreme Court of the United States · 1940
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Johnson v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1936
- Marshall v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1932
- Smith v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1932
2 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Bixby v. CommissionerUnited States Tax Court · 1972
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Ayer v. CommissionerUnited States Board of Tax Appeals · 1941
- Bixby v. CommissionerUnited States Tax Court · 1972
- Borroughs v. McColganCalifornia Supreme Court · 1943
5 more not listed; retrieve them via the Exa API.