Klein v. Commissioner
United States Tax Court
Petitioner purchased realty with his own funds and had the sellers deed it to him as trustee for his two minor daughters. He did not sign the deed.
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Petitioner purchased realty with his own funds and had the sellers deed it to him as trustee for his two minor daughters. He did not sign the deed. It provided, in substance, that, as trustee for the two children named as beneficiaries, and for their use and benefit, he should control the property -- including leasing, improving, selling or exchanging, in his discretion; that the trust should terminate when the younger child (then aged seven) reached the age of twenty-one, and all trust corpus should vest in the two children. Later the petitioner, with his own funds, paid off the mortgage. He…
1Opinion of the Court
OPINION.
Disney, Judge:
The respondent contends that under Alabama statute there was no valid trust by petitioner for the two children, since the Sellers deed was not signed by him; also that, assuming a valid trust, under Alabama statute there was no genuine trust, considering the control and management reserved to petitioner, and under all of the facts. He further says that if there was a trust under state statute and a genuine trust within the meaning of the Internal Revenue Code, the income in question is nevertheless, under principles announced in Helvering v. Clifford, 309 U. S. 331,…
2Cases cited7 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Hodge v. JoySupreme Court of Alabama · 1921
- McCarthy v. McCarthySupreme Court of Alabama · 1883
- Randolph v. East Birmingham Land Co.Supreme Court of Alabama · 1893
- Straw v. MowerSupreme Court of Vermont · 1925
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Klein v. CommissionerUnited States Tax Court · 1950