Mills v. Commissioner
United States Board of Tax Appeals
Under a trust instrument, the settlor was to receive the income but, admittedly, was completely and irrevocably divested of the corpus, except for the requirement that that the net income * * * shall be insufficient to furnish to said Trustor the funds to which she has been accustomed for the upkeep of her home and her personal enjoyment * * * trustee should pay from the corpus such amount as might, in the discretion of the trustee, be reasonably necessary for such purpose.
Read the full summary
Under a trust instrument, the settlor was to receive the income but, admittedly, was completely and irrevocably divested of the corpus, except for the requirement that that the net income * * * shall be insufficient to furnish to said Trustor the funds to which she has been accustomed for the upkeep of her home and her personal enjoyment * * * trustee should pay from the corpus such amount as might, in the discretion of the trustee, be reasonably necessary for such purpose. None of the corpus was distributed to the settlor during the tax year, but the absence of the condition upon which it…
1Opinion of the Court
OPINION.
Leech :
The Commissioner determined a deficiency of $713.86 in the 1935 income tax of the decedent, Evelyn Scott Mills, by treating as her income the capital gain resulting from the sale or other disposition of securities by a trustee. The determination was predicated on Eevenue Act of 1934, section 166,1 and the petitioner, in assailing it, contests the applicability of that section. This is the sole issue in the case, and the facts have all been stipulated.
In 1927 the decedent, by a written instrument, created a trust, the income of which was to be distributed to her. The only…
2Cases cited3 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Helvering v. St. Louis Union Trust Co.Supreme Court of the United States · 1935
- Reinecke v. SmithSupreme Court of the United States · 1933
3Cited by6 opinions
- Buhl v. CommissionerUnited States Tax Court · 1944
- Frease v. CommissionerUnited States Tax Court · 1944
- Koehrer v. CommissionerUnited States Tax Court · 1945
- Mills v. CommissionerUnited States Board of Tax Appeals · 1939
- Wolcott v. CommissionerUnited States Board of Tax Appeals · 1940
1 more not listed; retrieve them via the Exa API.