Commissioner of Internal Revenue v. Procter

PARKER, Circuit Judge.

This is a petition to review a decision of the Tax Court holding that no gift tax could be assessed upon a transfer by one Frederic W. Procter of the remainder interests in two trust estates, which had been *825assigned by him as security to certain promissory notes. The facts are not disputed and are as follows :

Taxpayer held interests in four separate trusts which had been created by his grandfather. On January 13, 1939, he was indebted to his mother in the sum of $686,-300.03, evidenced by seven promissory notes payable on demand, which had been secured by the assignment…