Hutchings v. Commissioner
United States Tax Court
Petitioner transferred certain property in trust and empowered the trustees in their sole and absolute discretion to either hold and accumulate the trust income or distribute it among the beneficiaries at such times and in such amounts as they deemed necessary and advisable.
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Petitioner transferred certain property in trust and empowered the trustees in their sole and absolute discretion to either hold and accumulate the trust income or distribute it among the beneficiaries at such times and in such amounts as they deemed necessary and advisable. The trustees were also empowered, although not required, to sell all or any part of the trust corpus, but in the event of sale they were required to distribute to the beneficiaries the cash proceeds therefrom and the payments of any vendor's lien notes, whether principal or income. Held, the gifts in trust were gifts of…
1Opinion of the Court
OPINION.
Arnold, Judge:
Originally this proceeding involved the number of $5,000 exclusions to which petitioner was entitled in determining her gift tax liability for 1935. Our determination that she was entitled to but one $5,000 exclusion, 40 B. T. A. 27, was reversed by the Circuit Court of Appeals for the Fifth Circuit in Hutchings v. Commissioner, 111 Fed. (2d) 229, which held that the gifts in trust were to be treated as seven gifts and allowed petitioner seven $5,000 exclusions. In Helvering v. Hutchings, 312 U. S. 393, the Supreme Court of the United States affirmed the Circuit Court,…
2Cases cited3 opinions
- United States v. PelzerSupreme Court of the United States · 1941
- Helvering v. HutchingsSupreme Court of the United States · 1941
- Ryerson v. United StatesSupreme Court of the United States · 1941
3Cited by13 opinions
- Wood v. CommissionerUnited States Tax Court · 1951
- Sharp v. CommissionerUnited States Tax Court · 1944
- Fondren v. CommissionerUnited States Tax Court · 1943
- Allen v. CommissionerUnited States Tax Court · 1944
- Morrow v. CommissionerUnited States Tax Court · 1943
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