Shiverick v. Commissioner
United States Board of Tax Appeals
The petitioner created a trust, reserving the power to revest in herself the corpus of the trust with the consent of her husband, who was named as a cotrustee. Under the trust the husband, if the settlor predeceased him, was to receive during his lifetime such portion of the net income of the trust as he demanded in writing. In addition, the trustee was authorized to pay him from the corpus of the trust such sums as it deemed necessary or proper for his support.
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The petitioner created a trust, reserving the power to revest in herself the corpus of the trust with the consent of her husband, who was named as a cotrustee. Under the trust the husband, if the settlor predeceased him, was to receive during his lifetime such portion of the net income of the trust as he demanded in writing. In addition, the trustee was authorized to pay him from the corpus of the trust such sums as it deemed necessary or proper for his support. Held, that the trust instrument created in the husband "a substantial adverse interest" to that of the grantor and the income was…
1Opinion of the Court
OPINION.
Mellott:
The commissioner added $3,612.95 to the net income reported by the petitioner for the year 1933 and determined a deficiency in her income tax for said year in the amount of $190.54. The proceeding was submitted upon a stipulation of facts. We find the facts to be as stipulated but set out herein only those necessary for an understanding of the issue to be decided.
The petitioner, a resident of Cleveland, Ohio, on March 19, 1930, conveyed bonds and other securities, aggregating approximately a half million dollars, to the Cleveland Trust Co. as trustee. The trust instrument…
2Cases cited4 opinions
- Burnet v. WellsSupreme Court of the United States · 1933
- Helvering v. City Bank Farmers Trust Co.Supreme Court of the United States · 1935
- Reinecke v. SmithSupreme Court of the United States · 1933
- Hoeper v. Tax Comm'n of Wis.Supreme Court of the United States · 1931
3Cited by8 opinions
- Commissioner of Internal Revenue v. ProutyCourt of Appeals for the First Circuit · 1940
- Commissioner of Internal Revenue v. BettsCourt of Appeals for the Seventh Circuit · 1941
- Childs v. CommissionerUnited States Board of Tax Appeals · 1941
- Irvine v. CommissionerUnited States Board of Tax Appeals · 1942
- Nathan v. CommissionerUnited States Tax Court · 1943
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