Clowe v. Commissioner
United States Tax Court
1. Estate Tax -- Rule Against Perpetuities -- Vesting -- Interpretation. -- The rule against perpetuities was not violated where an ambiguous provision of a deed of trust could be read as providing that the remainder interest should go to persons ascertainable at the death of a person in being at the time the trust was created. 2. Estate Tax -- Power to Terminate -- Section 811(d)(1). -- The decedent, the grantor of an inter vivos trust, had a power to terminate within the…
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1. Estate Tax -- Rule Against Perpetuities -- Vesting -- Interpretation. -- The rule against perpetuities was not violated where an ambiguous provision of a deed of trust could be read as providing that the remainder interest should go to persons ascertainable at the death of a person in being at the time the trust was created. 2. Estate Tax -- Power to Terminate -- Section 811(d)(1). -- The decedent, the grantor of an inter vivos trust, had a power to terminate within the meaning of section 811(d)(1) where, in conjunction with the other trustees, he could sell trust property, under the trust…
1Opinion of the Court
OPINION.
Murdock, Judge:
The petitioner claims that the attempted transfer of the remainder interest to others than Martha is void because it violates the common law rule against perpetuities applicable in Texas, but the provisions of the instrument transferring interests to Martha are valid, with the result that a fee simple interest was transferred to her and there was no transfer subject to any change within the meaning of section 811 (d) (1). The validity of the instrument has never been challenged in Texas. The Commissioner sees no violation of the rule against perpetuities in any part of…
2Cases cited22 opinions
- Commissioner v. Estate of HolmesSupreme Court of the United States · 1946
- Boyd v. Frost National Bank of S.A.Texas Supreme Court · 1946
- Industrial Trust Co. v. Commissioner of Internal Rev.Court of Appeals for the First Circuit · 1947
- Rust v. RustCourt of Appeals of Texas · 1948
- Hurd v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1947
17 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Clowe v. CommissionerUnited States Tax Court · 1952
- Estate of Hardesty v. CommissionerUnited States Tax Court · 1952
- Estate of Maxant v. CommissionerUnited States Tax Court · 1980