Estate of Malone v. Commissioner
United States Tax Court
A trust created in 1933 gave decedent a life estate. Nine months before her death, decedent assigned her rights in the trust to her son.
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A trust created in 1933 gave decedent a life estate. Nine months before her death, decedent assigned her rights in the trust to her son. Held, (1) decedent was creator of the trust; (2) the trust spendthrift clause did not invalidate her assignment; (3) decedent was not mentally capable of legally assigning her interest; (4) the assignment was made in contemplation of death within the meaning of section 2035, I.R.C. 1954; and (5) the trust is accordingly includable in decedent's gross estate under sections 2035 and 2036, I.R.C. 1954.
1Opinion of the Court
ESTATE OF MAY C. MALONE, DECEASED, THE COLORADO NATIONAL BANK OF DENVER, ADMINISTRATOR, C.T.A., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Estate of Malone v. Commissioner
Docket No. 4037-73.
United States Tax Court
T.C. Memo 1976-16; 1976 Tax Ct. Memo LEXIS 385; 35 T.C.M. (CCH) 50; T.C.M. (RIA) 760016;
January 26, 1976, Filed
A trust created in 1933 gave decedent a life estate. Nine months before her death, decedent assigned her rights in the trust to her son. Held, (1) decedent was creator of the trust; (2) the trust spendthrift clause did not invalidate her assignment; (3)…
2Cases cited40 opinions
- United States v. WellsSupreme Court of the United States · 1931
- Allen v. Trust Co. of Ga.Supreme Court of the United States · 1946
- Estate of Johnson v. CommissionerUnited States Tax Court · 1948
- Commissioner of Internal Revenue v. Estate of Ellis Branson Ridgway, Deceased, Craig Sawyer Ridgway and Ellis Branson Ridgway, Jr., ExecutorsCourt of Appeals for the Third Circuit · 1961
- Cuddihy v. CommissionerUnited States Tax Court · 1959
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