Garrett's Estate v. Commissioner of Internal Revenue

L. HAND, Chief Judge.

The executors of Paul Garrett appeal from — petition to review — an order of the Tax Court, in banc, which included in whole or in part, the trust funds of two trusts, set up by Garrett, their testator: one in 1923, and the other in 1929. Although the settlor died in 1940, the Tax Court held that both trusts were made “in contemplation of death” within the meaning of the statute,1 and the case hinges on that finding of fact. We shall consider the two trusts separately and in their sequence in time.

The “Trust of 1923”

In 1923 Garrett had a wife, a son twenty years old, and…