Estate of Gerson v. Comm'r
United States Tax Court
G created the Benjamin Gerson Trust which became irrevocable when G died in 1973. The trust provided for the creation of a marital trust (the trust) for the benefit of G's wife, D. The trust conferred upon D a general power of appointment over the trust property. D died in October 2000 and left a will under which she exercised the power of appointment in favor of her grandchildren.
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G created the Benjamin Gerson Trust which became irrevocable when G died in 1973. The trust provided for the creation of a marital trust (the trust) for the benefit of G's wife, D. The trust conferred upon D a general power of appointment over the trust property. D died in October 2000 and left a will under which she exercised the power of appointment in favor of her grandchildren. R determined that the transfer to D's grandchildren was subject to generation-skipping transfer (GST) tax. P contends (1) sec. 26.2601-1(b)(1)(i), GST Tax Regs., is invalid, and (2) the transfer is excepted from…
1Concurrence
Holmes J.,
concurring: The issue before the court is simply this — is the regulation a reasonable interpretation of the statute? I concur with the result that the majority reaches and with their analysis of the disputed regulation’s validity under National Muffler.1
I write separately because the Sixth Circuit — the circuit to which any appeal of this case is headed — has expressly adopted Chevron2 deference for tax regulations, like the one here, that are issued under section 7805’s general authority.3 In Swallows,4 the Court aired its differences on deference under National Muffler versus…
2Cases cited13 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
- National Railroad Passenger Corporation v. Boston & Maine Corp.Supreme Court of the United States · 1992
- E. Norman Peterson Marital Trust, Chemical Bank, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1996
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