City Bank Farmers Trust Co. v. Commissioner

KALODNER, Circuit Judge.

This appeal is taken from the decision of the Tax Court.

The principal question presented is whether the facts concerning the creation, 15 months apart, or reciprocal irrevocable inter vivos trusts by decedent and her husband with power, in each instance, to terminate the trusts and acquire the trust property, support the Tax Court’s conclusion that decedent’s estate is liable for estate tax under § 811(d) 1 of the I.R.C., 26 U.S.C.A. Int.Rev.Code, § 811, on the theory that she may be regarded as the settlor of the trust created by her husband, under the doctrine of…