Estate of Stewart v. Commissioner
United States Tax Court
Decedent established two inter vivos trusts with a reserved life estate, two secondary life estates, and ultimate remainders to named charities. The sole corporate trustee was given discretionary power to allocate receipts and expenditures between principal and income and to invest in wasting assets without provision for a reserve or sinking fund.
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Decedent established two inter vivos trusts with a reserved life estate, two secondary life estates, and ultimate remainders to named charities. The sole corporate trustee was given discretionary power to allocate receipts and expenditures between principal and income and to invest in wasting assets without provision for a reserve or sinking fund. Held, the discretionary powers did not constitute a power of indirect invasion in favor of the secondary life beneficiaries and the charitable remainders are deductible under sec. 2055, I.R.C. 1954.
1Opinion of the Court
Estate of Lillie MacMunn Stewart, Deceased, W. Alan Henderson, Executor, Petitioner v. Commissioner of Internal Revenue, Respondent
Estate of Stewart v. Commissioner
Docket No. 689-68
United States Tax Court
52 T.C. 830; 1969 U.S. Tax Ct. LEXIS 77;
August 14, 1969, Filed
Decision will be entered under Rule 50.
Decedent established two inter vivos trusts with a reserved life estate, two secondary life estates, and ultimate remainders to named charities. The sole corporate trustee was given discretionary power to allocate receipts and expenditures between principal and income and to invest in wasting…
2Cases cited22 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- Commissioner v. Estate of SternbergerSupreme Court of the United States · 1955
- Carrier v. . CarrierNew York Court of Appeals · 1919
- Blodget v. Delaney, CollectorCourt of Appeals for the First Circuit · 1953
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