Froman Trust v. Commissioner
United States Tax Court
Decedent established a testamentary trust, which was to distribute income to charitable and noncharitable beneficiaries and the remainder to charity. The trustees were given certain discretionary powers with respect to the acquisition and disposition of trust property and with respect to the allocation of receipts between income and principal.
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Decedent established a testamentary trust, which was to distribute income to charitable and noncharitable beneficiaries and the remainder to charity. The trustees were given certain discretionary powers with respect to the acquisition and disposition of trust property and with respect to the allocation of receipts between income and principal. Held, under the terms of the will and the applicable Illinois law, the trustees' discretionary powers were so restricted that the value of the charitable remainder was ascertainable.
1Opinion of the Court
Simpson, Judge:
The respondent determined that the petitioners are liable as transferees for a deficiency in the Federal estate tax of the Estate of Kate Froman in the amount of $56,710.28. The issue for decision is whether the fact that the trustees under a testamentary trust had certain discretionary powers with respect to the investment of property and the allocation of receipts between income and principal caused the value of a charitable remainder to be unascertainable for estate tax purposes.
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
The…
2Cases cited19 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Henslee v. Union Planters National Bank & Trust Co.Supreme Court of the United States · 1949
- Commissioner v. Estate of SternbergerSupreme Court of the United States · 1955
- Estate of Lillie MacMunn Stewart, Deceased, W. Alan Henderson v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1971
- The Miami Beach First National Bank, as Under the Will of Lenore P. Hartz, Deceased v. United StatesCourt of Appeals for the First Circuit · 1971
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3Cited by13 opinions
- Palmer v. CommissionerUnited States Tax Court · 1974
- Molbreak v. CommissionerUnited States Tax Court · 1973
- Seder v. CommissionerUnited States Tax Court · 1973
- Estate of McGuire v. Comm'rUnited States Tax Court · 1972
- Estate of Simonson v. CommissionerUnited States Tax Court · 1973
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