Estate of Alexander v. Commissioner
United States Tax Court
T created a trust in 1943, naming himself as trustee and his daughter, L, then 9 months of age, as the sole beneficiary. T retained the right as trustee to accumulate trust income as he might "desire." When L reached the age of 21, she was to receive distributions from the trust in $ 5,000 installments every 5 years until she reached the age of 66, when all remaining accumulated income and principal were to be paid to her.
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T created a trust in 1943, naming himself as trustee and his daughter, L, then 9 months of age, as the sole beneficiary. T retained the right as trustee to accumulate trust income as he might "desire." When L reached the age of 21, she was to receive distributions from the trust in $ 5,000 installments every 5 years until she reached the age of 66, when all remaining accumulated income and principal were to be paid to her. In the event of her prior death, the funds were to be paid over to her estate or as she might direct by will. T retained the right to designate successor trustees. In 1950…
1Opinion of the Court
Raum, Judge:
The Commissioner determined a $164,974.70 Federal estate tax deficiency against the Estate of John A. Alexander (hereinafter petitioner or the estate). After concessions, the only issue remaining for decision is whether section 2036(a)(2), I.R.C. 1954, requires inclusion in the estate of that portion of an inter vivos trüst which may be traced to transfers made by the decedent, John A. Alexander, to a trust in which the trustee could accumulate or distribute income. The answer depends in part upon whether the decedent, who was the original trustee and thereafter resigned as such,…
2Cases cited14 opinions
- Commissioner v. Estate of HolmesSupreme Court of the United States · 1946
- United States v. O'MALLEYSupreme Court of the United States · 1966
- Lober v. United StatesSupreme Court of the United States · 1953
- Industrial Trust Co. v. Commissioner of Internal Rev.Court of Appeals for the First Circuit · 1947
- Cuddihy v. CommissionerUnited States Tax Court · 1959
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3Cited by1 opinion
- Estate of Alexander v. CommissionerUnited States Tax Court · 1983