Webster v. Commissioner
United States Board of Tax Appeals
1. Decedent executed a trust agreement in 1929, reserving income for life and the right to request trustee to draw upon principal for illness and unusual expenses. The trust provided that withdrawals should not exceed 50 percent of trust.
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1. Decedent executed a trust agreement in 1929, reserving income for life and the right to request trustee to draw upon principal for illness and unusual expenses. The trust provided that withdrawals should not exceed 50 percent of trust. Held, the trust is irrevocable as to one-half of the trust, which is not includable in decedent's estate under section 302(c), Revenue Act of 1926; held, further, that irrevocable transfers were made prior to March 3, 1931, effective date of amendment to section 302(c), so that the trust is not taxable because of reservation of income for life. Hassett v.…
1Opinion of the Court
*279OPINION.
Hakeon:
The petitioner alleges that the Commissioner erred in including in the value of the gross estate all of the items referred to above and in allowing a deduction of only $1,614.50 for funeral expenses.(1) Trusts created December 31, 1929, and July 12, 1932. — The decedent executed a trust December 31, 1929, and conveyed to the trustee, the Guaranty Trust Co. of New York, securities of a total par value of $122,000. This trust will be referred to as the 1929 trust. Paragraph 4 of the 1929 trust reserved to the grantor the right to withdraw not in excess of 50 percent of the total…
2Cases cited23 opinions
- United States v. WellsSupreme Court of the United States · 1931
- Reinecke v. Northern Trust Co.Supreme Court of the United States · 1929
- Freuler v. HelveringSupreme Court of the United States · 1934
- Nichols v. CoolidgeSupreme Court of the United States · 1927
- Hassett v. WelchSupreme Court of the United States · 1938
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3Cited by5 opinions
- Brown v. CommissionerUnited States Board of Tax Appeals · 1938
- Central Hanover Bank & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Estate of Rogers v. CommissionerSupreme Court of the United States · 1943
- Morris v. CommissionerUnited States Board of Tax Appeals · 1938
- Webster v. CommissionerUnited States Board of Tax Appeals · 1938