Konner v. Commissioner
United States Tax Court
On March 5, 1955, a grandparent of two minor children (under 3 years of age) established a trust for the benefit of each child.
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On March 5, 1955, a grandparent of two minor children (under 3 years of age) established a trust for the benefit of each child. Each trust was to terminate when the beneficiary reached the age of 21 or upon her prior death, and the trustee was given the discretion to determine whether money and other property received should be deemed to be principal or income, to pay to the beneficiary or apply for her benefit so much of the income and principal as the trustee deemed proper, and to accumulate the portion of the income not so paid or applied. Each trust provided that the principal of the…
1Opinion of the Court
OPINION.
Ratjm, Judge:
The Commissioner determined a deficiency in gift tax for 1955 in the amount of $165, and an addition to tax under section 6651 of the Internal Revenue Code of 1954 in the amount of $8.25 for failure to file a timely gift tax return, against each petitioner. The facts have been stipulated.
The question for decision is whether income interests given by means of a trust for the benefit of beneficiaries of two trusts (already in existence) during their minority qualify as gifts of present interests so as to entitle each of the petitioners to an exclusion of $3,000 with respect…
2Cases cited2 opinions
- Fondren v. CommissionerSupreme Court of the United States · 1945
- Herr v. CommissionerUnited States Tax Court · 1961
3Cited by14 opinions
- Messing v. CommissionerUnited States Tax Court · 1967
- Weller v. CommissionerUnited States Tax Court · 1962
- Herr v. CommissionerUnited States Tax Court · 1961
- Bray v. CommissionerUnited States Tax Court · 1966
- Commissioner of Internal Revenue v. Josephine N. Thebaut and Charles R. Thebaut, Jr.Court of Appeals for the Fifth Circuit · 1966
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