Estate of Gilman v. Commissioner
United States Tax Court
In 1948, decedent owned 60 percent of the common stock and a substantial block of the preferred stock of a corporation. In that year he transferred the common stock to a trust of which he was one of three trustees.
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In 1948, decedent owned 60 percent of the common stock and a substantial block of the preferred stock of a corporation. In that year he transferred the common stock to a trust of which he was one of three trustees. He continued to serve as a trustee of that trust and as a director and chief executive officer of the corporation until he died in 1967. Held, decedent did not retain the enjoyment of the entrusted stock or the right to designate the person or persons who would enjoy the stock or the income therefrom within the meaning of sec. 2036(a)(1) or 2036(a)(2), I.R.C. 1954.
1Dissent
Tannenwald, J,
dissenting: What bothers me most about the majority approach is that is appears to escalate the rationale of United States v. Byrum, 408 U.S. 125 (1972), which was developed in light of the particular facts of that case, into a mandated.rigid doctrine of wide application. In other words, the majority opinion may be interpreted as concretizing Byrum, thus opening up the possibility that future decisions will permit trust arrangements to avoid estate tax consequences contrary to the clear intent of Congress as expressed in section 2036. If this is not the intended consequence of…
2Cases cited2 opinions
- United States v. ByrumSupreme Court of the United States · 1972
- Estate of Goodwyn v. CommissionerUnited States Tax Court · 1973