La Fargue v. Commissioner
United States Tax Court
Pursuant to an overall plan, petitioner established a trust with a nominal corpus of $ 100. Petitioner's sister, the son of friends, and her lawyer were trustees. Two days later, petitioner transferred various assets to the trust in return for equal annual payments for life from the trust. The annual payment multiplied by petitioner's life expectancy equaled the fair market value of the assets transferred, no allowance having been made for any interest factor.
Read the full summary
Pursuant to an overall plan, petitioner established a trust with a nominal corpus of $ 100. Petitioner's sister, the son of friends, and her lawyer were trustees. Two days later, petitioner transferred various assets to the trust in return for equal annual payments for life from the trust. The annual payment multiplied by petitioner's life expectancy equaled the fair market value of the assets transferred, no allowance having been made for any interest factor. Held, based upon all the facts and circumstances, the transfer of assets was not a sale or exchange for an annuity but a transfer in…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined deficiencies in the Federal income tax of petitioner for 1971, 1972, and 1973 in the respective amounts of $3,576.58, $4,052.04, and $3,912 together with negligence penalties under section 6653(a).1 The negligence penalties have been conceded by respondent, and capital loss adjustments set forth in one notice of deficiency have been conceded by petitioner. There remains at issue whether certain transactions between petitioner and a trust which she established should be treated as constituting a transfer of property in exchange for an annuity in her…
2Cases cited38 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Bixby v. CommissionerUnited States Tax Court · 1972
- United States v. ByrumSupreme Court of the United States · 1972
- McSpadden v. CommissionerUnited States Tax Court · 1968
- Dean v. CommissionerUnited States Tax Court · 1961
33 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- Karme v. CommissionerUnited States Tax Court · 1980
- Gershkowitz v. CommissionerUnited States Tax Court · 1987
- Esther Lafargue v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1982
- Stern v. CommissionerUnited States Tax Court · 1981
- Benson v. CommissionerUnited States Tax Court · 1983
23 more not listed; retrieve them via the Exa API.