Jones v. Commissioner

A testator bequeathed his property to his wife for life, with remainder to their daughter "absolutely in fee." By the terms of the will be widow was given the "power to dispose of said property and to do and act with the same as her own to devise, mortgage, or sell and deed the same in fee." During her lifetime the widow, for a nominal consideration, made a revocable transfer in trust of certain securities received under the will of her husband, directing that she receive the income therefrom for life, and upon her death that the entire trust estate (with exception of $10,000) be paid to her…