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Full-Text Articles in Estates and Trusts
Loopholes And Ambiguities Of Section 2036, James C. Ervin Jr.
Loopholes And Ambiguities Of Section 2036, James C. Ervin Jr.
Michigan Law Review
The possibility of divergent tax treatment of economically similar situations has made section 2036 of the Internal Revenue Code' one of the most abused of the federal estate tax provisions. Originally enacted to ensure inclusion within the gross estate of the value of all property ostensibly transferred by the decedent prior to his death and yet beneficially enjoyed by him during his lifetime, the section is being circumvented by an increasing number of tax avoidance patterns. Although some of the confusion can be traced to the erratic approach of the courts to cases involving section 2036, the primary interpretive difficulty …
Rule Against Perpetuities - Recent Legislation In Massachusetts, Maine And Connecticut, David W. Swanson S.Ed.
Rule Against Perpetuities - Recent Legislation In Massachusetts, Maine And Connecticut, David W. Swanson S.Ed.
Michigan Law Review
Three very significant statutes dealing with the rule against perpetuities and containing identical language in their important provisions have recently been passed in Massachusetts, Maine, and Connecticut. There are three basic provisions. (1) In applying the rule against perpetuities to an interest limited to take effect at or after the termination of one or more life estates in, or lives of, persons in being when the period of the rule begins to run, the validity of the interest shall be determined on the basis of the facts existing at the termination of the life estates or lives. (2) If any …
The Church And Spiegel Cases: A Reinterpretation Of The "Possession Or Enjoyment" Clause Of I.R.C. 811 ©, William J. Schrenk Jr., Richard V. Wellman
The Church And Spiegel Cases: A Reinterpretation Of The "Possession Or Enjoyment" Clause Of I.R.C. 811 ©, William J. Schrenk Jr., Richard V. Wellman
Michigan Law Review
Although federal tax statutes have provided for over thirty years that "transfers intended to take effect in possession or enjoyment at or after death" shall be included in the grantor's gross estate for estate tax purposes attempts to define precisely the scope of this language have not been outstanding for their success. In two recent decisions by the Supreme Court, Commissioner v. Church and Spiegel v. Commissioner, a further attempt at clarification has been made.
Taxation-Federal Estate Tax-Inclusion In Gross Estate Of Transfer By Which Settlor Retained Power To Terminate, C. C. Grunewald S.Ed.
Taxation-Federal Estate Tax-Inclusion In Gross Estate Of Transfer By Which Settlor Retained Power To Terminate, C. C. Grunewald S.Ed.
Michigan Law Review
In 1928, decedent established a trust giving his wife the income for her life, with a remainder to his three children. Decedent, as co-trustee, retained power to pay portions of the corpus to his wife and to change the trust on his approval of a written request by his wife. When the estate challenged the commissioner's assessment of a tax deficiency, the Tax Court, relying on the power to invade the principal, included the trust corpus in the gross estate under section 811(d)(2) of the I.R.C., no reduction being allowed for the wife's life estate since no method of evaluating …
Reformation Of Instruments-Mistake-Deed Of Married Woman, Eugene H. Lattin
Reformation Of Instruments-Mistake-Deed Of Married Woman, Eugene H. Lattin
Michigan Law Review
In 1887 one Evans deeded to Mattie Woodbridge a lot described in the deed as lot 31, believing that the lot described was lot 29. Mattie took possession of lot 29, and held it until October 7, 1913, when she deeded it by the same description as in the original deed to one Casto, an intermediary, who then deeded it to William, Mattie's husband. Husband and wife continued in possession of lot 29 until her death in 1919. Lot 31, the lot described in the deed of 1887, continued in the possession of Evans and his successors until 1905, when …
Future Interests-Rule Against Perpetuities-Contingent Remainders In The Alternative-Rule Of Loddington V. Kime-Power Of Appointment, Shubrick T. Kothe S.Ed.
Future Interests-Rule Against Perpetuities-Contingent Remainders In The Alternative-Rule Of Loddington V. Kime-Power Of Appointment, Shubrick T. Kothe S.Ed.
Michigan Law Review
Prior to her marriage, settlor created a trust, reserving to herself a life estate, with general testamentary power of appointment over the corpus. The trust deed provided further that in default of appointment, "or as to any part of said estate as to which the appointment may for any reason fail to take effect," the property was to remain in trust to pay one-half the income to her fiancé for life, if he should survive her, the other half to her children who survived or the issue of deceased children, and to pay over the principal when the youngest taker …
Co-Tenancy-Conveyance By Grantor To Himself And Another, Shubrick T. Kothe
Co-Tenancy-Conveyance By Grantor To Himself And Another, Shubrick T. Kothe
Michigan Law Review
Decedent, owning land and personal property thereon, executed a deed purporting to convey to herself and her son a life estate in the property "as joint tenants during their joint lives and an absolute fee forever in the remainder to the survivor of them. . . " Held, the deed created a tenancy in common in both of them during their lives and an estate in fee to the survivor. Hass v. Hass, (Wis. 1946) 21 N.W. (2d) 398.
Powers - Less Than Outright Appointments, H. Marshall Peter
Powers - Less Than Outright Appointments, H. Marshall Peter
Michigan Law Review
The decedent created a voluntary trust, providing for income payments to himself during his life and upon his death to X for her life, and directing the trustee "at her death to pay over and deliver the principal of said trust to whomsoever may be designated by her by Will or other testimentary instrument . . . . " In the event that she failed to make such designation, her descendants, or, if there were none, her heirs were to receive the principal. X in her will gave her husband a life estate and, on his death or remarriage, bequeathed …
Dower - Premarital Conveyance As Fraud On Dower, Michigan Law Review
Dower - Premarital Conveyance As Fraud On Dower, Michigan Law Review
Michigan Law Review
Decedent, seven days before his marriage to plaintiff, conveyed all his property to his nephew, the defendant. Plaintiff was not informed of the transfer until some time after the marriage. The property was worth $22,000, and decedent, who was at that time sixty-two years of age, was allowed to retain a life estate therein. Cancellation of a note for $2,904 owing from decedent to defendant served as consideration for the transfer. Held, the transfer was a fraud on dower since it was made without the knowledge of the intended wife for the purpose of defeating the interest which she …
Taxation - Inheritance And Estate Taxes - Powers Of Appointment, William L. Howland
Taxation - Inheritance And Estate Taxes - Powers Of Appointment, William L. Howland
Michigan Law Review
From time immemorial, problems arising from the creation and exercise of powers of appointment have proven enigmatic to the judiciary. These problems are not decadent but still possess an abundance of vitality. The increased complexity of statutes imposing death taxes has tended to foment litigation. These two fertile sources of intricate problems, in combination, have borne the apprehended fruits. The taxation of powers of appointment has created problems of infinite variety, harassing alike the attorney, the judge and the legislator. The questions involved are not simply of academic or theoretical importance. Under our modern death tax statutes the questions are …
Taxation - Federal Estate Tax - Gift In Contemplation Of Death, Edmund O'Hare
Taxation - Federal Estate Tax - Gift In Contemplation Of Death, Edmund O'Hare
Michigan Law Review
Decedent, when eighty years old and while still in good health, set up an irrevocable trust of one-third of his property, with a life estate to his daughter and remainder over on the daughter's death to her children and descendants. Under the trust deed the income was to be accumulated and added to the principal until the donor's death. The Supreme Court found that decedent, who was thinking about speculating on the stock exchange, was anxious to insure adequate provision for his daughter and her descendants upon his death, and that he therefore determined to make an irrevocable disposition of …
Implication Of Life Estates, Distributive Construction And Disposition Of Intermediate Income, Albert M. Kales
Implication Of Life Estates, Distributive Construction And Disposition Of Intermediate Income, Albert M. Kales
Michigan Law Review
The Problems Stated. Suppose a testator makes a devise or bequest to take effect after the death of A, without however expressly giving any interest to A. Does A take a life estate by implication? If not, what happens to the income or the rents and profits? Suppose a testator devise Blackacre to A for life and after the death of A said Blackacre together with other property is devised to B. Here three questions at once arise. Does A take a life estate by implication in the property other than Blackacre? If not, then are the words "after the …