Patterson v. Commissioner
United States Board of Tax Appeals
Petitioner's decedent created an irrevocable trust with income to himself for life with remainder over to named beneficiaries. The instrument provided that the trustees should have the power, in the event that the net income should be insufficient for his support and maintenance, to use and disburse from time to time the principal of the trust estate for such purposes, if the majority of them deemed it necessary or expedient, or if requested by the decedent.
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Petitioner's decedent created an irrevocable trust with income to himself for life with remainder over to named beneficiaries. The instrument provided that the trustees should have the power, in the event that the net income should be insufficient for his support and maintenance, to use and disburse from time to time the principal of the trust estate for such purposes, if the majority of them deemed it necessary or expedient, or if requested by the decedent. The net income was never insufficient during decedent's lifetime and no part of the principal was so used. Held, under the facts the…
1Opinion of the Court
*411OPINION.
ARNOLD:
The respondent contends (1) that the transfer was made in contemplation of death, and/or intended to take effect in possession and enjoyment at or after the death of the transferor; (2) that the beneficial use and enjoyment of the property was subject at the date of the transferor’s death to the exercise of a power to alter, amend, and change and the property was therefore taxable under section 302 (d) of the Revenue Act of 1926.
From the evidence in the record we have found as a fact that the transfer was not made in contemplation of death. In fact it appears that the decedent…
2Cases cited8 opinions
- Knowlton v. MooreSupreme Court of the United States · 1900
- Gould v. GouldSupreme Court of the United States · 1917
- Reinecke v. Northern Trust Co.Supreme Court of the United States · 1929
- United States v. MerriamSupreme Court of the United States · 1923
- Helvering v. City Bank Farmers Trust Co.Supreme Court of the United States · 1935
3 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Jennings v. SmithCourt of Appeals for the Second Circuit · 1947
- Pardee v. CommissionerUnited States Tax Court · 1967
- Commissioner of Internal Revenue v. FlandersCourt of Appeals for the Second Circuit · 1940
- Arents v. CommissionerUnited States Tax Court · 1960
- Higgins v. WhiteCourt of Appeals for the First Circuit · 1937
12 more not listed; retrieve them via the Exa API.