Marshall v. Commissioner
United States Tax Court
Petitioner created a trust, the income of which was payable to his wife for life. He retained rights, comparable in all respects save the length of term, to those retained by the settlor in Helvering v. Clifford, 309 U.S. 331. Held, following Howard Phipps, 47 B. T. A. 357, that the length of the term is not decisive but is merely one of the factors to be considered in determining whether the settlor has retained the substance of full enjoyment of the property and is…
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Petitioner created a trust, the income of which was payable to his wife for life. He retained rights, comparable in all respects save the length of term, to those retained by the settlor in Helvering v. Clifford, 309 U.S. 331. Held, following Howard Phipps, 47 B. T. A. 357, that the length of the term is not decisive but is merely one of the factors to be considered in determining whether the settlor has retained the substance of full enjoyment of the property and is therefore taxable upon the income of the trust.
1Opinion of the Court
OPINION.
Mellott, Judge:
This proceeding, involving a deficiency in income tax for the calendar year 1939 in the amount of $614.96, was submitted upon a stipulation of facts, which are found accordingly. The sole issue is whether the respondent erred in including in petitioner’s income dividends aggregating $2,700, paid upon stock which had previously been transferred by him to a trust created for the benefit of his wife and children.
The theory upon which respondent determined the deficiency is that the rationale of Helvering v. Clifford, 309 U. S. 331, is applicable. The essence of the cited…
2Cases cited3 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. StuartSupreme Court of the United States · 1942
3Cited by22 opinions
- Cartinhour v. CommissionerUnited States Tax Court · 1944
- Rentschler v. CommissionerUnited States Tax Court · 1943
- Stockstrom v. CommissionerUnited States Tax Court · 1944
- Hall v. CommissionerUnited States Tax Court · 1944
- Cherry v. CommissionerUnited States Tax Court · 1944
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