Estate of Anne P. Bird, Deceased, Norman L. Bird, Administrator v. United States

This appeal involves the federal tax consequences to a wife’s estate after her death, arising out of a property settlement agreement incident to divorce whereby her husband assigned her his contingent remainder interest in a trust.

Anne P. Bird and her husband Truman H. Newberry II were divorced on September 7, 1955. In connection with the divorce proceeding a property settlement agreement was entered into in August, 1955. Under the terms of the agreement, the husband assigned to the wife, to the extent of $75,-000. his contingent remainder interest in a trust. The 33-year-old husband’s right…