Commissioner of Internal Revenue v. Netcher

EVANS, Circuit Judge.

The Facts: The stipulated facts show that respondent’s grandfather, Charles Netcher, died in 1904. By his will he created a “principal” trust of which his wife was trustee. She received one-third of the income of this trust, and the remaining two-thirds were to be equally divided and paid to four “special” or subsidiary trusts for the benefit, respectively, of each his four children. The trusts were to run until they, respectively, reached the age of twenty-five. Thereupon each child was to be paid, during his life, his proportion of the income from both the principal and…