Richards v. Commissioner
United States Tax Court
In 1941, petitioner, who was president, director and holder of 50 per cent of the voting stock of X and Y Corporations, executed 9 separate trust instruments purporting to convey to the trustees, without reversion, "legal title in and to a beneficial interest in and to" 70 per cent of his stock in X and Y. Each of petitioners 9 children was the beneficiary of one of the trusts, which were irrevocable and to endure for the maximum period permitted by law.
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In 1941, petitioner, who was president, director and holder of 50 per cent of the voting stock of X and Y Corporations, executed 9 separate trust instruments purporting to convey to the trustees, without reversion, "legal title in and to a beneficial interest in and to" 70 per cent of his stock in X and Y. Each of petitioners 9 children was the beneficiary of one of the trusts, which were irrevocable and to endure for the maximum period permitted by law. Petitioner reserved no control over trustees or administration of the trusts, and no trust income was to be accumulated for his benefit or…
1Opinion of the Court
OPINION.
Harron, Judge:
The issue in these proceedings is whether the income of nine trusts which Richards, as head of the community, created for the benefit of his children is includible in his income and that of his wife under section 22 (a).
The petitioners contend that the income which was paid to the trustees of the Burke Trusts is taxable to the trustees because under the terms of the trusts there is no retention by the settlor of any beneficial enjoyment of the income, or of any control over the trusts corpus. The petitioners argue that the trusts involved in these proceedings do not come…
2Cases cited17 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. HorstSupreme Court of the United States · 1940
- Blair v. CommissionerSupreme Court of the United States · 1937
- Paramount-Richards Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
- Green v. CommissionerUnited States Tax Court · 1946
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3Cited by1 opinion
- Richards v. CommissionerUnited States Tax Court · 1952