Hunt v. Commissioner
United States Tax Court
Community property consisting of ranch land in Texas was divided into two halves by husband and wife in order to make possible the procurement of a large loan on the property involved. The north half was deeded by the husband and wife to a trustee and by the trustee deeded back to the husband; and the south half was deeded to the wife directly by the husband. Each grantee agreed to pay the unpaid balance on the existing indebtedness against the land.
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Community property consisting of ranch land in Texas was divided into two halves by husband and wife in order to make possible the procurement of a large loan on the property involved. The north half was deeded by the husband and wife to a trustee and by the trustee deeded back to the husband; and the south half was deeded to the wife directly by the husband. Each grantee agreed to pay the unpaid balance on the existing indebtedness against the land. The anticipated loan was procured and the community indebtedness against the land was paid off. Thereafter the husband continued to manage and…
1DissentJohnson, J.
The south ranch, which decedent conveyed to his wife by warranty deed several years prior to his death, was, in my opinion, her separate property, not the property of the community, and hence not includible in decedent’s gross estate. The deed expressly stated that the land was conveyed to the wife “as her own separate property,” and it was also stipulated in the consideration that the payments made and to be made therefor were “out of her own separate funds.”
The majority’s contrary conclusion is based on the finding that the conveyance to the wife was not a gift, and, under their…
2Cases cited9 opinions
- Kellett v. TriceTexas Supreme Court · 1902
- Emery v. BarfieldCourt of Appeals of Texas · 1913
- Taylor v. HollingsworthTexas Supreme Court · 1943
- Watts v. BruceCourt of Appeals of Texas · 1903
- McDonald v. StevensonCourt of Appeals of Texas · 1922
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