Latta v. Commissioner of Internal Revenue

GOODRICH, Circuit Judge.

The question in this case is whether the taxpayer is liable for a gift tax for the year 1947. This in turn depends upon whether a gift in trust made by her in 1930 was a final gift in that year or whether its finality was postponed until the later date.

The facts are not difficult. The set-tlor, then Mrs. Bissell, who was separated from her husband, set up a trust in 1930. Beneficial interest was to herself for life and remainder to the two adopted children of the Bissells. The instrument contained a provision that the trust could be rescinded or changed by the settlor…