Martinez v. Commissioner
United States Tax Court
Petitioner established two identical irrevocable trusts, naming her mother as beneficiary of one and her father as beneficiary of the other. The terms of each trust require the trustee thereof to distribute at least annually all of the net income to the beneficiary for life. The trustee is prohibited from distributing any principal to the beneficiary. There is no power to accumulate income.
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Petitioner established two identical irrevocable trusts, naming her mother as beneficiary of one and her father as beneficiary of the other. The terms of each trust require the trustee thereof to distribute at least annually all of the net income to the beneficiary for life. The trustee is prohibited from distributing any principal to the beneficiary. There is no power to accumulate income. Upon death of the beneficiary the trust terminates and the corpus reverts to petitioner, if living. The trustee was given the power, in his absolute discretion, to (1) make disbursements and charges from…
1Opinion of the Court
Sterrett, Judge:
Respondent determined a deficiency in petitioner’s gift tax for the calendar year 1969 in the amount of $15,609.67. The principal issue for our determination is whether, in two trusts established by petitioner, the administrative powers granted the trustee cause the interest retained by petitioner and the interest created in the beneficiary to be not susceptible of measurement on the basis of generally accepted valuation principles.
FINDINGS OF FACT
This case was submitted under Rule 122, hence all of the facts have been stipulated and are so found.
Petitioner Cherlyn C. Caldwell…
2Cases cited20 opinions
- Robinette v. HelveringSupreme Court of the United States · 1943
- Commissioner v. DisstonSupreme Court of the United States · 1945
- Arnold Van Den Wymelenberg, as of the Estate of Eleanor Van Den Wymelenberg, and Arnold Van Den Wymelenberg v. United StatesCourt of Appeals for the Seventh Circuit · 1968
- Estate of Ford v. CommissionerUnited States Tax Court · 1969
- Estate of Lillie MacMunn Stewart, Deceased, W. Alan Henderson v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1971
15 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Jane W. Holbrook and First National Bank of Arizona, Co-Executors of the Estate of William Wraith, Jr., Deceased v. United StatesCourt of Appeals for the First Circuit · 1978
- Estate of Gooel v. CommissionerUnited States Tax Court · 1977
- Swetland v. CommissionerUnited States Tax Court · 1978
- Bear v. CommissionerUnited States Tax Court · 1979
- Campbell v. Comm'rUnited States Tax Court · 1979
3 more not listed; retrieve them via the Exa API.