Berolzheimer v. Commissioner
United States Board of Tax Appeals
1. TRUST INCOME - TAXABLE TO GRANTOR - (a) WHERE TRUST IS LACKING IN SUBSTANCE. - Trust held not lacking in substance or reality so as to be disregarded for income tax purposes. 2. Id. - (b) WHERE RESTRICTED TO DISCHARGE OF OBLIGATION OF GRANTOR. - Trust income taxable to grantor where restricted to maintenance and education of minor child, following Douglas v. Willcuts,296 U.S. 1.
1Opinion of the Court
OPINION.
Murdock:
The Commissioner determined deficiencies in income tax of the petitioners for 1934 by including in their income the income of trusts which they had created. The only issue for decision in each case is whether the income of the trusts is taxable to the grantors. The facts are found as stipulated by the parties.
Alfred C. Berolzheimer created a trust on May 2, 1932, for the benefit of his son born on April 25, 1925. The trust was irrevocable but was to terminate on January 2, 1941, or upon the death of the grantor or the beneficiary, whichever should occur first. The grantor…
2Cases cited1 opinion
- Douglas v. WillcutsSupreme Court of the United States · 1935
3Cited by5 opinions
- Suhr v. CommissionerCourt of Appeals for the Sixth Circuit · 1942
- Berolzheimer v. CommissionerUnited States Board of Tax Appeals · 1939
- George v. CommissionerUnited States Tax Court · 1943
- Heller v. CommissionerUnited States Board of Tax Appeals · 1940
- Hoover v. CommissionerUnited States Board of Tax Appeals · 1940