DuPont v. Commissioner

This case, like Burnet v. Wells, decided today, ante, p. 670, requires us to determine whether § 219 (h) of the Revenue Acts of 1924 and 1926 is consistent with the Fifth Amendment in its application to trusts for the payment of premiums on policies of insurance.

On September 18,1923, the petitioner, Du Pont, created nine trusts for the benefit of his, wife and children, transferring to the trustee thereby two policies of insurance on his life, and shares of stock in a corporation, the income to be used to keep the policies in force. The trusts were to last for three years, during which term…