Karsch v. Atkins

This suit originated with a bill filed on behalf of Mrs. Karsch, the settlor, to recover a gift tax paid the State under protest. The bill was demurred to on the ground that it showed on its face that the complaint was liable for the tax. The Chancellor sustained the demurrer. The cause has been duly appealed, briefs filed and able arguments heard. We now have the matter for determination.

On July 1, 1942, Mrs. Karsch created a trust for the benefit of her daughter for life and for the benefit of any child or children of the body of this daughter “or by legal adoption”.

The subject of the tax…