Clement v. Smith

LEAHY, District Judge.

Plaintiff sues to recover $14,753.18 and interest which represents gift taxes paid for 1945. The question is whether the taxpayer made a taxable gift of a life estate to his father when he transferred to a trust previously created securities in the amount of approximately $245,000. 1 The statutes and apposite regulations are found in the margin. 2

Plaintiff created the original trust on January 19, 1937. The corpus was $17,-277.20. Additions were made to the trust in 1937 and 1938. Gift tax returns were made for these years. The exact amount added to the trust in 1945 was…