Estate of Castleberry v. Commissioner
United States Tax Court
Decedent gave to his wife his community one-half share of certain property, so that it became her separate property. Under Texas law, the income from the transferred property was community property so that decedent owned a half share in such income.
Read the full summary
Decedent gave to his wife his community one-half share of certain property, so that it became her separate property. Under Texas law, the income from the transferred property was community property so that decedent owned a half share in such income. Held, decedent's gross estate includes (as a transfer with reserved life estate under sec. 2036(a)(1)) one-half of the transferred share (one-quarter of the whole). Estate of Hinds v. Commissioner, 11 T.C. 314 (1948), affd. on other grounds 180 F.2d 930 (5th Cir. 1950), followed.
1DissentFeatherston, J.
As I view the issue, the reasoning of the Court of Appeals for the Fifth Circuit in Commissioner v. Estate of Hinds, 180 F.2d 930 (5th Cir. 1950), dictates a holding that decedent did not retain a right to the income from the transferred bonds within the meaning of section 2036, and I think we should follow that reasoning.
In the Hinds case, the husband transferred community property to a trust and provided that the trust income was to be paid to his wife for her life and that the remainder was to go to their children. This Court held in Estate of Hinds v. Commissioner, 11 T.C. 314 (1948),…
2Cases cited6 opinions
- Arnold v. LeonardTexas Supreme Court · 1925
- Whitney Hardware Co. v. McMahanTexas Supreme Court · 1921
- Commissioner of Internal Revenue v. Estate of HindsCourt of Appeals for the Fifth Circuit · 1950
- Hinds v. CommissionerUnited States Tax Court · 1948
- Hawkins v. Britton State BankTexas Supreme Court · 1932
1 more not listed; retrieve them via the Exa API.