Ferrer v. Commissioner
United States Board of Tax Appeals
1. The petitioner was named the residuary legatee of her husband's estate and charged with a trust to expend such sums as she considered proper for the care and education of her four minor children.
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1. The petitioner was named the residuary legatee of her husband's estate and charged with a trust to expend such sums as she considered proper for the care and education of her four minor children. Held that the sums so expended should be reported as income of the children and are not properly included in her gross income. 2. Where an estate did not distribute income for prior years until 1921, held that income for those years is properly returnable by the estate and not by the beneficiary.
1Opinion of the Court
*813OPINION.
Black :
The first contention of the petitioner is that under the will of her husband the income of the property conveyed to her in trust was not for her benefit alone, but was also impressed with a trust for *814the benefit of the children and that whatever part of the income which within her discretion she should apply for the support, education, and maintenance of the children within the year in which said income was received should be taxable to the children and not to her. The respondent contends that the discretion authorized by the will is not the discretion imposed on a fiduciary,…
2Cases cited2 opinions
- Colton v. ColtonSupreme Court of the United States · 1888
- Loring v. LoringMassachusetts Supreme Judicial Court · 1868
3Cited by3 opinions
- Ferrer v. CommissionerUnited States Board of Tax Appeals · 1930
- Handly v. CommissionerUnited States Board of Tax Appeals · 1934
- Handly v. CommissionerUnited States Board of Tax Appeals · 1934