Thacher v. Commissioner
United States Tax Court
1. Held, on the record that six conveyances of property to six trusts for the benefit of settlor's five minor children and wife were not made in contemplation of death within section 811 (c), Internal Revenue Code. 2. In the instrument creating the trust for the benefit of the wife, decedent retained a specific reversion that in case of divorce or legal separation, or in case his wife predeceased him, the corpus of the trust was to be paid over to him by the trustee.
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1. Held, on the record that six conveyances of property to six trusts for the benefit of settlor's five minor children and wife were not made in contemplation of death within section 811 (c), Internal Revenue Code. 2. In the instrument creating the trust for the benefit of the wife, decedent retained a specific reversion that in case of divorce or legal separation, or in case his wife predeceased him, the corpus of the trust was to be paid over to him by the trustee. Held: a. The wife's life interest terminable only by her predeceasing the decedent was not an interest intended to take effect…
1Opinion of the Court
OPINION.
Bruce, Judge:
Respondent has included in the gross estate of the decedent the value of the corpora of all of the trusts here involved, including that for the benefit of the widow. This has been done upon the theory that all of the transfers were made in contemplation of death within the purview of section 811 (c), Internal Revenue Code.1
The statute seeks to reach substitutes for testamentary dispositions and thus to prevent the evasion of an estate tax. United States v. Wells, 283 U. S. 102. The question presented is factual. As the transfers may otherwise have all the indicia of valid…
2Cases cited18 opinions
- Helvering v. HallockSupreme Court of the United States · 1940
- United States v. WellsSupreme Court of the United States · 1931
- Commissioner of Internal Revenue v. MaresiCourt of Appeals for the Second Circuit · 1946
- First-Mechanics Nat. Bank v. Commissioner of Int. Rev.Court of Appeals for the Third Circuit · 1940
- Estate of Maresi v. CommissionerUnited States Tax Court · 1946
13 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Tarver v. CommissionerUnited States Tax Court · 1956
- Baldwin v. CommissionerUnited States Tax Court · 1959
- Estate of Aaron v. CommissionerCourt of Appeals for the Third Circuit · 1955
- Estate of Aaron v. CommissionerUnited States Tax Court · 1953
- Aaron v. CommissionerUnited States Tax Court · 1953
7 more not listed; retrieve them via the Exa API.