Legal Opinion

Webster v. Commissioner

United States Board of Tax Appeals

Decided August 9, 1938No. Docket No. 83466Published

1. Decedent executed a trust agreement in 1929, reserving income for life and the right to request trustee to draw upon principal for illness and unusual expenses. The trust provided that withdrawals should not exceed 50 percent of trust.

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1. Decedent executed a trust agreement in 1929, reserving income for life and the right to request trustee to draw upon principal for illness and unusual expenses. The trust provided that withdrawals should not exceed 50 percent of trust. Held, the trust is irrevocable as to one-half of the trust, which is not includable in decedent's estate under section 302(c), Revenue Act of 1926; held, further, that irrevocable transfers were made prior to March 3, 1931, effective date of amendment to section 302(c), so that the trust is not taxable because of reservation of income for life. Hassett v.…

1Opinion of the Court

JAMES C. WEBSTER AND BARONIG BARON, AS EXECUTORS OF THE ESTATE OF LISA W. SANDFORD, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Webster v. Commissioner

Docket No. 83466.

United States Board of Tax Appeals

38 B.T.A. 273; 1938 BTA LEXIS 887;

August 9, 1938, Promulgated

1. Decedent executed a trust agreement in 1929, reserving income for life and the right to request trustee to draw upon principal for illness and unusual expenses. The trust provided that withdrawals should not exceed 50 percent of trust. Held, the trust is irrevocable as to one-half of the trust, which is not…

2Cases cited5 opinions

  1. Hassett v. WelchSupreme Court of the United States · 1938
  2. Saltonstall v. SaltonstallSupreme Court of the United States · 1928
  3. Chanler v. KelseySupreme Court of the United States · 1907
  4. Helvering v. GrinnellSupreme Court of the United States · 1935
  5. Webster v. CommissionerUnited States Board of Tax Appeals · 1938

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