Makransky v. Commissioner
United States Tax Court
The settlor of a trust transferred all the capital stock of a wholly owned corporation to the trust for the benefit of his four daughters. The settlor, the four daughters, and three others were trustees. The transfer rendered the settlor insolvent because of a substantial obligation arising from a judgment in favor of the Commonwealth of Pennsylvania. The Commonwealth threatened the trust assets under the Pennsylvania Fraudulent Conveyance Act.
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The settlor of a trust transferred all the capital stock of a wholly owned corporation to the trust for the benefit of his four daughters. The settlor, the four daughters, and three others were trustees. The transfer rendered the settlor insolvent because of a substantial obligation arising from a judgment in favor of the Commonwealth of Pennsylvania. The Commonwealth threatened the trust assets under the Pennsylvania Fraudulent Conveyance Act. The trust, with the approval of a State court, caused the corporation to make distributions to the settlor, and after his demise, to his estate. The…
1Opinion of the Court
OPINION.
Mulroney, Judge:
The respondent determined deficiencies in petitioners’ income tax and additions to tax for the years 1952 through 1956, as follows:
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A trust had as its corpus all of the capital stock of a corporation. The settlor of the trust (who was also president of the corporation and a trustee) was insolvent and had a substantial outstanding obligation to the Commonwealth of Pennsylvania. The beneficiaries of the trust were the four daughters of the settlor. The trust caused the corporation to make distributions to the settlor and to his estate after his demise. These…
2Cases cited10 opinions
- Irving Sachs v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1960
- Baird v. CommissionerUnited States Tax Court · 1955
- Sachs v. CommissionerUnited States Tax Court · 1959
- Fidelity Trust Co. v. Union National BankSupreme Court of Pennsylvania · 1933
- Tucker v. BinenstockSupreme Court of Pennsylvania · 1932
5 more not listed; retrieve them via the Exa API.
3Cited by43 opinions
- Neonatology Assocs., P.A. v. Comm'rUnited States Tax Court · 2000
- Yelencsics v. CommissionerUnited States Tax Court · 1980
- Commissioner v. MakranskyCourt of Appeals for the Third Circuit · 1963
- Schwartz v. CommissionerUnited States Tax Court · 1978
- Norman v. CommissionerUnited States Tax Court · 1987
38 more not listed; retrieve them via the Exa API.