Shapero v. Commissioner
United States Tax Court
Petitioner in 1934 created three trusts, one each for the benefit of his wife and his minor son and daughter, and reserved to himself, as cotrustee, broad managerial authority, and discretionary power to accumulate income, invade corpora, accelerate termination of the trusts, and direct the sale and fix the price of trust property. As grantor, he could remove the corporate cotrustee and amend the trusts in any way except to change the rights of enjoyment of any beneficiary.
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Petitioner in 1934 created three trusts, one each for the benefit of his wife and his minor son and daughter, and reserved to himself, as cotrustee, broad managerial authority, and discretionary power to accumulate income, invade corpora, accelerate termination of the trusts, and direct the sale and fix the price of trust property. As grantor, he could remove the corporate cotrustee and amend the trusts in any way except to change the rights of enjoyment of any beneficiary. During the taxable years each of the trusts held a considerable number of shares of stock of a corporation of which…
1Opinion of the Court
OPINION.
Hill, Judge:
The question for our determination is whether or not the petitioner is taxable as an individual upon the income of the three trusts created by him in 1934 for the benefit of his wife and minor children. The respondent has determined that the powers over the trusts retained by the petitioner as donor-trustee require the taxation to him of the trust income under section 22 (a) of the Internal Revenue Code.
It has often been observed that each case of this character rests primarily on its own facts. The facts here indicate to us that petitioner’s economic position was…
2Cases cited11 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Estate of HolmesSupreme Court of the United States · 1946
- Green v. CommissionerUnited States Tax Court · 1946
- Loew v. CommissionerUnited States Tax Court · 1946
- Morgan v. CommissionerUnited States Tax Court · 1945
6 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Corning v. CommissionerUnited States Tax Court · 1955
- Harbor Building Trust v. CommissionerUnited States Tax Court · 1951
- Harbor Bldg. Trust v. CommissionerUnited States Tax Court · 1951
- Bollinger v. CommissionerUnited States Tax Court · 1963
- Corning v. CommissionerUnited States Tax Court · 1955
3 more not listed; retrieve them via the Exa API.