Leonard v. Commissioner
United States Tax Court
In 1938, petitioners, husband and wife, transferred community property to the husband as trustee for their three minor daughters. The trusts were irrevocable and for long terms.
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In 1938, petitioners, husband and wife, transferred community property to the husband as trustee for their three minor daughters. The trusts were irrevocable and for long terms. Only in the event the grantors, as parents, were unable to support the beneficiaries could the trustee in his sole discretion distribute any income prior to the beneficiary attaining the age of 21. Distribution of certain percentages of the trust estate was mandatory when beneficiary attained the ages of 21 and 30, and the trustee in his discretion could distribute a certain part of the trust estate when beneficiary…
1Opinion of the Court
OPINION.
Black, Judge:
The only question remaining to our determination is whether the income of trusts No. 1 for the years 1938, 1939, and 1940 is taxable to the grantors thereof under section 22 (a), 166, or 167 of the Revenue Act of 1938 (as to the year 1938) and of the Internal Revenue Code (as to the years 1939 and 1940), or is taxable to the trusts under section 161 of the Revenue Act of 1938 and of the Internal Revenue Code; and whether the income of trusts No. 2 for the year 1940 is taxable to the grantors thereof under code section 22 (a), 166, or 167, or is taxable to the trusts under…
2Cases cited7 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. FullerSupreme Court of the United States · 1940
- Cartinhour v. CommissionerUnited States Tax Court · 1944
- Lowenstein v. CommissionerUnited States Tax Court · 1944
- Stockstrom v. CommissionerUnited States Tax Court · 1944
2 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Hall v. CommissionerCourt of Appeals for the Tenth Circuit · 1945
- Leonard v. CommissionerUnited States Tax Court · 1945