Klauber v. Commissioner
United States Tax Court
1. Express terms of trust instrument and applicable State law gave decedent powers amounting to a "reversionary interest" as described in section 811(c)(2), I.R.C. 1939. 2. Since only an ascertainable portion of corpus was subject to such powers, only that portion was includible in decedent's gross estate. 3. The values of such powers, a secondary life estate, and remote reversions in the entire corpus cannot be added in determining whether the requisite 5 per centum…
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1. Express terms of trust instrument and applicable State law gave decedent powers amounting to a "reversionary interest" as described in section 811(c)(2), I.R.C. 1939. 2. Since only an ascertainable portion of corpus was subject to such powers, only that portion was includible in decedent's gross estate. 3. The values of such powers, a secondary life estate, and remote reversions in the entire corpus cannot be added in determining whether the requisite 5 per centum interest under section 811(c) (2) has been exceeded. 4. A discretionary power of termination, not vested in decedent and of no…
1Opinion of the Court
OPINION.
Forrester, Judge:
The respondent has determined a deficiency of $103,026.17 in the estate tax of the decedent, Arthur Klauber. The principal issue for decision is whether there should be included under section 811(c)(2), I.R.C. 1939,1 the corpus of a trust created by decedent on June 4, 1932, wherein decedent reserved two possible reversions, certain powers of invasion and a secondary life estate.2
The above resolves itself into three subordinate issues as follows:
1. Whether decedent could, under applicable State law and the terms of the trust, remove at will his individual cotrustee…
2Cases cited19 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. HallockSupreme Court of the United States · 1940
- Fidelity-Philadelphia Trust Co. v. RothensiesSupreme Court of the United States · 1945
- May v. MaySupreme Court of the United States · 1897
- Industrial Trust Co. v. Commissioner of Internal Rev.Court of Appeals for the First Circuit · 1947
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3Cited by5 opinions
- Bank of New York v. United StatesDistrict Court, S.D. New York · 1970
- Estate of Valentine v. CommissionerUnited States Tax Court · 1970
- Estate of Sullivan v. CommissionerUnited States Tax Court · 1993
- Estate of Valentine v. CommissionerUnited States Tax Court · 1970
- Klauber v. CommissionerUnited States Tax Court · 1960