Krag v. Commissioner
United States Tax Court
Taxpayers, husband and wife, in November 1941 each executed a so-called deed of gift and trust agreement for the benefit of their minor son and daughter. Section 2280, Civil Code of California, as amended in 1931, provides that "Unless expressly made irrevocable by the instrument creating the trust, every voluntary trust shall be revocable by the trustor." The trusts were not expressly made irrevocable.
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Taxpayers, husband and wife, in November 1941 each executed a so-called deed of gift and trust agreement for the benefit of their minor son and daughter. Section 2280, Civil Code of California, as amended in 1931, provides that "Unless expressly made irrevocable by the instrument creating the trust, every voluntary trust shall be revocable by the trustor." The trusts were not expressly made irrevocable. In 1944, in a suit for reformation of the above instruments, a decree was entered reforming each trust so as to make it irrevocable as of its original date. Held, the trusts were, under…
1Opinion of the Court
OPINION.
Van Fossan, Judge-.
It is contended by the respondent that the trusts herein involved, having been executed after 1931 and not having been made expressly irrevocable by the instrument creating them, are revocable under section 2280 of the Civil Code of California as amended in 19311 (George S. Gaylord, 3 T. C. 281; affd. (C. C. A., 9th Cir.), 153 Fed. (2d) 408), and hence, the income of the trusts is taxable in equal shares to the petitioners under section 166 of the Internal Revenue Code. Respondent makes no claim that the income is taxable to petitioners under section 22 (a),…
2Cases cited12 opinions
- Blair v. CommissionerSupreme Court of the United States · 1937
- Helvering v. StuartSupreme Court of the United States · 1942
- Freuler v. HelveringSupreme Court of the United States · 1934
- Green v. CommissionerUnited States Tax Court · 1946
- Gaylord v. CommissionerUnited States Tax Court · 1944
7 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Straight Trust v. CommissionerUnited States Tax Court · 1955
- Flitcroft v. CommissionerUnited States Tax Court · 1962
- Estate of Hill v. CommissionerUnited States Tax Court · 1975
- Turkoglu v. CommissionerUnited States Tax Court · 1961
- Newman v. CommissionerUnited States Tax Court · 1953
15 more not listed; retrieve them via the Exa API.