Sharpe v. Commissioner
United States Tax Court
1. Shortly before his death an individual transferred a substantial portion of his property to a trustee with instructions to distribute the corpus ratably, during the 25 years immediately following his death, to an English corporation organized for the general purpose of advocating, espousing, and maintaining the principle of the "Single Tax."
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1. Shortly before his death an individual transferred a substantial portion of his property to a trustee with instructions to distribute the corpus ratably, during the 25 years immediately following his death, to an English corporation organized for the general purpose of advocating, espousing, and maintaining the principle of the "Single Tax." The value of the property on the date of death was deducted by the executor from gross estate on the theory that such deduction was proper under section 303 (a) (3) of the Revenue Act of 1926 as amended. Under the facts it is held: (1) Petitioner has…
1Opinion of the Court
OPINION.
Mellott, Judge-.
The provisions of the revenue act and of the regulations applicable to the first issue are shown in the margin.4
Petitioner, pointing out that the statute recognizes a transfer may be made either to a corporation meeting the specified tests or to a trustee meeting somewhat the same but neverthless different tests, divides its argument into two parts. Its major contention, or in any event the one discussed at greater length upon brief, is that the decedent, in effect, created two successive trusteeships — one (Union Trust Co.) being “an investing trustee” and the other…
2Cases cited1 opinion
- Mears's EstateSupreme Court of Pennsylvania · 1930
3Cited by8 opinions
- Estate of Smith v. CommissionerUnited States Tax Court · 1972
- Huntington Nat'l Bank v. CommissionerUnited States Tax Court · 1949
- Liberty Nat. Bank & Trust Co. v. United StatesDistrict Court, W.D. Kentucky · 1954
- Carson v. CommissionerUnited States Tax Court · 1978
- Carson v. CommissionerUnited States Tax Court · 1978
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