Kaplan v. Commissioner of Internal Revenue

MORTON, Circuit Judge.

Kaplan made a written declaration of trust and transferred to himself as trustee under it certain personal property. By the terms of the instrument, the income of the trust property was to be paid to Kaplan’s wife for her life, with a reversion of the beneficial interest to him if he outlived her, and if he did not, then on her death to his children. The declaration also permitted the trustee to accumulate “a reasonable portion of the income,” the accumulation to be payable at the discretion of the trustee to the person or persons who at the time of payment were entitled…