Wilken v. Commissioner
United States Tax Court
Ps established a trust in 1978 to provide for the college education of their children. Ps contributed $20,000 of savings certificates and $80,000 borrowed from a bank to the trust. Ps then borrowed $80,000 from the trust to repay their bank loan, and gave two $40,000 promissory notes to the trust.
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Ps established a trust in 1978 to provide for the college education of their children. Ps contributed $20,000 of savings certificates and $80,000 borrowed from a bank to the trust. Ps then borrowed $80,000 from the trust to repay their bank loan, and gave two $40,000 promissory notes to the trust. The notes did not provide for payment of principal until four months after termination of the trust on February 7, 1989. Held, the substance of the series of transactions in connection with the creation of the trust was the transfer by petitioners of their notes to the trust without consideration.…
1Opinion of the Court
ROBERT W. WILKEN AND ILLONA H. WILKEN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Wilken v. Commissioner
Docket No. 24882-84.
United States Tax Court
T.C. Memo 1987-272; 1987 Tax Ct. Memo LEXIS 272; 53 T.C.M. (CCH) 965; T.C.M. (RIA) 87272;
June 2, 1987.
Ps established a trust in 1978 to provide for the college education of their children. Ps contributed $20,000 of savings certificates and $80,000 borrowed from a bank to the trust. Ps then borrowed $80,000 from the trust to repay their bank loan, and gave two $40,000 promissory notes to the trust. The notes did not provide for…
2Cases cited12 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Glass v. CommissionerUnited States Tax Court · 1986
- Beck v. Comm'rUnited States Tax Court · 1980
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