Pettus v. Commissioner
United States Tax Court
Petitioners established identical trusts for the benefit of each of their minor children. Each trust instrument provided that the income of the trust was to be paid to the beneficiary or accumulated as the trustee determined in his uncontrolled discretion. The principal of each trust could be invaded only if the trustee determined that the beneficiary was "in need of funds," because of "illness, infirmity or disability, either mental or physical."
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Petitioners established identical trusts for the benefit of each of their minor children. Each trust instrument provided that the income of the trust was to be paid to the beneficiary or accumulated as the trustee determined in his uncontrolled discretion. The principal of each trust could be invaded only if the trustee determined that the beneficiary was "in need of funds," because of "illness, infirmity or disability, either mental or physical." The trustee was granted discretion to add accumulated income to the principal, and was also granted other extensive administrative powers.…
1Opinion of the Court
James T. Pettus, Jr., et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Pettus v. Commissioner
Docket Nos. 2496-67, 2497-67, 2498-67, 2499-67, 5075-67, 5076-67
United States Tax Court
54 T.C. 112; 1970 U.S. Tax Ct. LEXIS 227;
January 27, 1970, Filed
Decisions will be entered under Rule 50.
Petitioners established identical trusts for the benefit of each of their minor children. Each trust instrument provided that the income of the trust was to be paid to the beneficiary or accumulated as the trustee determined in his uncontrolled discretion. The principal of each trust could be…
2Cases cited41 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Brewster v. GageSupreme Court of the United States · 1930
- United States v. PelzerSupreme Court of the United States · 1941
- Koshland v. HelveringSupreme Court of the United States · 1936
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