Estate of Goelet v. Commissioner
United States Tax Court
In 1960, settlor established a trust, the income of which was payable to his children and the principal of which was distributable to them if they survived the settlor and reached a specific age, otherwise to designated classes of beneficiaries. Settlor retained, as trustee, power to pay or accumulate income and power to distribute principal to his children, thereby terminating the trust and destroying the contingent remainders.
Read the full summary
In 1960, settlor established a trust, the income of which was payable to his children and the principal of which was distributable to them if they survived the settlor and reached a specific age, otherwise to designated classes of beneficiaries. Settlor retained, as trustee, power to pay or accumulate income and power to distribute principal to his children, thereby terminating the trust and destroying the contingent remainders. Held, the retained powers prevented the transfer in trust from being a completed gift under sec. 2511(a), I.R.C. 1954; held, further, no part of the transfer was made…
1Opinion of the Court
Featherston, Judge:
In these consolidated cases, respondent determined deficiencies in gift tax for the year 1960 against petitioner Estate of Henry Goelet, deceased, Henriette Goelet, executrix, in the amount of $39,729.38, and against petitioner Henriette Goelet in the amount of $39,729.38. As to Henriette Goelet, respondent also determined a 25-percent addition to tax for failure to file a timely gift tax return for the year 1960 in the amount of $9,932.34.
A motion filed by petitioners to sever the issues for trial was granted. The principal issue here presented for decision is whether,…
2Cases cited12 opinions
- Burnet v. GuggenheimSupreme Court of the United States · 1933
- Smith v. ShaughnessySupreme Court of the United States · 1943
- Robinette v. HelveringSupreme Court of the United States · 1943
- Commissioner v. Estate of HolmesSupreme Court of the United States · 1946
- Vanderpoel v. . LoewNew York Court of Appeals · 1889
7 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Ward v. CommissionerUnited States Tax Court · 1986
- Estate of Rosenberg v. CommissionerUnited States Tax Court · 1986
- Estate of Marshall v. CommissionerUnited States Tax Court · 1969
- Estate of Vak v. CommissionerUnited States Tax Court · 1991
- Estate of Goelet v. CommissionerUnited States Tax Court · 1968
3 more not listed; retrieve them via the Exa API.