McCormick v. Commissioner
United States Board of Tax Appeals
Where the decedent, dying in 1934, had made a transfer in trust in 1923, when he was 63, by which about 50 percent of his estate was set aside for the benefit of his wife and three sons, in order to make them financially independent and reduce his own income taxes; held, that contemplation of death may not be inferred from these circumstances as the impelling cause of the transfer, under section 302(c), Revenue Act of 1926, especially since the only motives evident were…
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Where the decedent, dying in 1934, had made a transfer in trust in 1923, when he was 63, by which about 50 percent of his estate was set aside for the benefit of his wife and three sons, in order to make them financially independent and reduce his own income taxes; held, that contemplation of death may not be inferred from these circumstances as the impelling cause of the transfer, under section 302(c), Revenue Act of 1926, especially since the only motives evident were associated with life and not with death; held, further, that where the Commissioner affirmatively pleads a new issue, the…
1Opinion of the Court
OPINION.
Keen:
This proceeding arises on respondent’s determination of a deficiency in Federal estate taxes of $247,200.86. Part of this deficiency has been consented to by the petitioner. Under the original determination respondent included in the gross estate only one-half of the corpus of the trust created by decedent on April 28, 1923, the portion set aside for the decedent’s wife, on the ground that it was a transfer intended to take effect in possession or enjoyment at or after death under section 302 (c) of the Revenue Act of 1926, set out in the margin.1 Conceding now, however, that…
2Cases cited4 opinions
- United States v. WellsSupreme Court of the United States · 1931
- Hassett v. WelchSupreme Court of the United States · 1938
- May v. HeinerSupreme Court of the United States · 1930
- Becker v. St. Louis Union Trust Co.Supreme Court of the United States · 1935
3Cited by11 opinions
- Estate of Falese v. CommissionerUnited States Tax Court · 1972
- Estate of Keating v. KeatingMontana Supreme Court · 1958
- Estate of Benjamin Paschal O'Neal v. CommissionerUnited States Tax Court · 1947
- Estate of Falese v. CommissionerUnited States Tax Court · 1972
- Estate of George Cornelius Mills v. CommissionerUnited States Tax Court · 1946
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