Funk v. Commissioner
United States Tax Court
Petitioner was the sole trustee of trusts set up by her husband. Petitioner was given the absolute power to pay, in her own discretion and not subject to the control of her husband or of any other person, all or part of the trust income to herself or to her husband, in accordance with their respective needs, of which she was the sole judge, and to accumulate any undistributed balance.
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Petitioner was the sole trustee of trusts set up by her husband. Petitioner was given the absolute power to pay, in her own discretion and not subject to the control of her husband or of any other person, all or part of the trust income to herself or to her husband, in accordance with their respective needs, of which she was the sole judge, and to accumulate any undistributed balance. Held, petitioner is taxable under section 22 (a) on all of the trust income, whether or not she distributed all of the income to herself. Mallinckrodt v. Nunan, 146 Fed. (2d) 1, and Stix v. Commissioner, 152…
1Opinion of the Court
OPINION.
HaRROn, Judge:
The issue in this case is whether petitioner is taxable under section 22 (a) of the Revenue Act of 1938 and the Internal Revenue Code on the income of trusts A, B, C, and D. Petitioner was not the grantor of the trusts. Her husband was. Moreover, he retained the power to dispose of the corpus by will when the trusts terminated upon his death. But during the life of the trusts petitioner was the sole trustee, with the power to pay the income to herself or her husband, or to divide it between them, or to accumulate and add it to principal. This power of distribution or…
2Cases cited7 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. HorstSupreme Court of the United States · 1940
- Corliss v. BowersSupreme Court of the United States · 1930
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Reinecke v. SmithSupreme Court of the United States · 1933
2 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Funk v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1947
- Kieckhefer v. CommissionerUnited States Tax Court · 1950
- Grant v. CommissionerUnited States Tax Court · 1948
- Grant v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1949
- Funk v. CommissionerUnited States Tax Court · 1950
11 more not listed; retrieve them via the Exa API.