Estate of Thomson v. Commissioner
United States Tax Court
Decedent established a trust prior to 1931, reserving to himself the discretionary power to distribute trust income to beneficiaries or to accumulate such income and add it to principal. Held: Each item of income thus added to principal constituted a separate "transfer," United States v. O'Malley, 383 U.S. 627, and all such post-1931 additions are subject to inclusion in decedent's gross estate under sec. 2036(a)(2), 1954 Code.
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Decedent established a trust prior to 1931, reserving to himself the discretionary power to distribute trust income to beneficiaries or to accumulate such income and add it to principal. Held: Each item of income thus added to principal constituted a separate "transfer," United States v. O'Malley, 383 U.S. 627, and all such post-1931 additions are subject to inclusion in decedent's gross estate under sec. 2036(a)(2), 1954 Code. They are not relieved of tax by sec. 2036(b) relating to transfers "made before March 4, 1931," which is applicable in this case only to that portion of the trust at…
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined a deficiency of $37,176.18 in the estate tax of the Estate of James L. Thomson and a deficiency of $80,156.68 in the estate tax of the Estate of Adelaide L. Thomson. The only issues remaining for decision are: (1) Whether trust income added to principal periodically from 1933 through 1966 was “transferred” to the trust after March 4,1931, the effective date of section 2036, I.ICC. 1954, where the decedent had created the trust prior to March 4, 1931, reserving to himself the discretionary power to distribute trust income to beneficiaries or to…
2Cases cited35 opinions
- Hassett v. WelchSupreme Court of the United States · 1938
- May v. HeinerSupreme Court of the United States · 1930
- Commissioner v. Estate of ChurchSupreme Court of the United States · 1949
- United States v. ByrumSupreme Court of the United States · 1972
- Estate of Spiegel v. CommissionerSupreme Court of the United States · 1949
30 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Estate of James L. Thomson v. Commissioner of Internal Revenue, Estate of Adelaide L. Thomson v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1974
- Estate of Bell v. CommissionerUnited States Tax Court · 1976
- Estate of Jordahl v. CommissionerUnited States Tax Court · 1975
- Elinor M. Swain and Kawyn Moody, as Co-Executors of the Estate of Pauline E. Taylor Moody v. United StatesCourt of Appeals for the Seventh Circuit · 1998
- Estate of Bell v. CommissionerUnited States Tax Court · 1976
4 more not listed; retrieve them via the Exa API.