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Articles 91 - 120 of 180

Full-Text Articles in Taxation-Federal Estate and Gift

Federal Estate And Gift Taxation-Adequacy Of Consideration In Transfers Connected With Divorce Proceedings Or Separation Agreements, Joseph G. Egan S.Ed. Apr 1950

Federal Estate And Gift Taxation-Adequacy Of Consideration In Transfers Connected With Divorce Proceedings Or Separation Agreements, Joseph G. Egan S.Ed.

Michigan Law Review

Today it is common procedure for a husband and wife, contemplating divorce or separation, to make an advance agreement concerning alimony and division of their property. Often this agreement will be adopted by the court in its decree of separation or divorce. It is the purpose of this comment to discuss the estate and gift tax consequences of such agreements. In order to understand properly the problems which have come up in connection with gift tax liability, it is necessary first to chart out the path taken under the estate tax.

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Taxation-Estate And Gift Taxes-Reciprocal Trusts-Mitigating Features Of The Technical Changes Act Of 1949, Paul A. Anderson S.Ed. Mar 1950

Taxation-Estate And Gift Taxes-Reciprocal Trusts-Mitigating Features Of The Technical Changes Act Of 1949, Paul A. Anderson S.Ed.

Michigan Law Review

Where two trusts are created by separate donors under circumstances indicating reciprocity, the doctrine of the Lehman case requires that each donor be treated as the grantor of the trust over which he holds various incidents of ownership to the extent that the amounts in the two trusts are equal. For tax purposes the nominal grantors are transposed. The legal basis of this doctrine is the principle of trust law that one who furnishes the consideration for the creation of a trust is the settlor, although in form the trust was created by another. Thus if the settlor of trust …

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Taxation-Technical Changes Act Of 1949-"Possession Or Enjoyment" Clause Of I.R.C. 811 ( C), Paul A. Anderson S.Ed., Stephen A. Bryant S. Ed. Mar 1950

Taxation-Technical Changes Act Of 1949-"Possession Or Enjoyment" Clause Of I.R.C. 811 ( C), Paul A. Anderson S.Ed., Stephen A. Bryant S. Ed.

Michigan Law Review

For the past decade Congress has been urged to define specifically the scope of I.R.C. 811(c), which subjects to the estate tax an inter vivas transfer intended to take effect in possession or enjoyment at or after the donor's death. Until 1949 proposed amendments were largely directed at legislative rejection of the doctrine of Helvering v. Hallock, but with the decisions in the Church and Spiegel cases last year, it became apparent that more extensive revision and clarification was needed. Sections 7 and 8 of the Technical Changes Act of 1949, which became law on October 25, 1949, represent …

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Taxation-Federal Estate Tax-Charitable Deduction-Certainity Of Amount Of Gift In Remainder To Charity When Corpus May Be Invaded For Life Tenant, Frank L. Adamson S. Ed. May 1949

Taxation-Federal Estate Tax-Charitable Deduction-Certainity Of Amount Of Gift In Remainder To Charity When Corpus May Be Invaded For Life Tenant, Frank L. Adamson S. Ed.

Michigan Law Review

Testator left his estate in trust for the life of his mother, giving her a life income of $750 per month. The trustees were authorized to use the rest of the income and the principal for her "pleasure, comfort and welfare" and were instructed to care and provide for her as she might desire. A deduction for a gift to charity of a portion of the remainder was disallowed by the commissioner. The executor sued to recover the tax paid, alleging that the annual income from the estate exceeded the mother's fixed share by $6000, that she had independent investments, …

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Taxation-Federal Estate Tax-Transfers Of Life Insurance In Contemplation Of Death, Ralph E. Hunt S. Ed. Apr 1949

Taxation-Federal Estate Tax-Transfers Of Life Insurance In Contemplation Of Death, Ralph E. Hunt S. Ed.

Michigan Law Review

Insurance policies on the life of a decedent are ordinarily included in his gross estate according to the provisions of section 811 (g) of the Internal Revenue Code. Where the policy is payable to a beneficiary other than the executor, it is taxable under section 811(g)(2): (1) if the decedent paid premiums on the policy, in proportion to the amount of premiums paid by him in relation to the total premiums paid, or (2) if the decedent possessed at his death any of the incidents of ownership. However, these provisions are not exclusive; even though section 811 (g) is inapplicable, …

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Quasi-Contracts -- Taxation -- Rescission Of Gift For Failure To Achieve Donor's Purpose Of Minimizing Federal Income Taxes, N. S. Peterman S. Ed. Apr 1949

Quasi-Contracts -- Taxation -- Rescission Of Gift For Failure To Achieve Donor's Purpose Of Minimizing Federal Income Taxes, N. S. Peterman S. Ed.

Michigan Law Review

In 1937, plaintiff made a gift of stock in a closed corporation to his wife, the defendant. For two years defendant received cash dividends on the stock transferred to her and paid income taxes thereon. Late in 1938 the corporation was dissolved; the assets were distributed to the shareholders, and a partnership was formed. Defendant continued to report the income received by her from the partnership. In 1946, the Tax Court sustained the contention of the commissioner of internal revenue that the entire income from this partnership was taxable to plaintiff under the doctrine of Commissioner v. Tower. Plaintiff …

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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 Mar 1949

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.

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Taxation-Federal Estate Tax-Inclusion In Gross Estate Of Transfer By Which Settlor Retained Power To Terminate, C. C. Grunewald S.Ed. Jan 1949

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 …

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Taxation-Liens-Nature Of Federal Estate Tax Lien, David D. Ring Dec 1948

Taxation-Liens-Nature Of Federal Estate Tax Lien, David D. Ring

Michigan Law Review

At the time of his death, decedent owned certain land in fee simple. His executrix, authorized by an order of the probate court, sold the land to herself as an individual. Subsequently, the United States began condemnation proceedings against the land, paying an award into court. Before distribution of this award was ordered, the executrix in her individual capacity and as ostensible owner was permitted in accordance with statute to withdraw a part of this award. The withdrawal was made without prejudice to her right to the remainder if it proved more than sufficient to satisfy the claims of other …

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Taxation-Trust Income-Taxability To Person Other Than Settlor On Basis Of "Unfettered Command", L. K. Cooperrider S.Ed. Nov 1948

Taxation-Trust Income-Taxability To Person Other Than Settlor On Basis Of "Unfettered Command", L. K. Cooperrider S.Ed.

Michigan Law Review

Petitioner's father, who owned the entire capital stock of a manufacturing corporation, bequeathed a controlling interest therein to his wife and son, in equal shares. The widow transferred her shares in trust to a corporate trustee, the evident purpose being to vest in the son, petitioner here, the power to control the corporation. According to the terms of the trust the income was to be accumulated and added to the corpus for the joint lives of the settlor and petitioner, and after death of settlor to be disposed of according to the directions of petitioner. The shares were to be …

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Quasi-Contracts-Taxation-Rescission Of Gifts Where Gift Fails To Achieve Donor's Purpose Of Minimizing Federal Income Taxes, Charles M. Soller S.Ed., Edwin F. Uhl S. Ed. Jun 1948

Quasi-Contracts-Taxation-Rescission Of Gifts Where Gift Fails To Achieve Donor's Purpose Of Minimizing Federal Income Taxes, Charles M. Soller S.Ed., Edwin F. Uhl S. Ed.

Michigan Law Review

A recent Michigan case, Stone v. Stone, presents problems of complexity and far-reaching importance. The plaintiffs, husband and wife, each owned a one-half interest in a family business partnership, and each apparently reported a proportionate share of the partnership earnings for federal income tax purposes. For the purpose of further reducing taxes on the income of the family unit, each parent transferred a one-quarter interest in the partnership to one of their two minor children, and thereafter each parent and child filed separate income tax returns reporting one-fourth of the partnership earnings as individual income. Each parent, under a …

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Taxation - Federal Income Tax - Choice Of Remedies-Tax Court Or District Court, Samuel N. Greenspoon S.Ed. Jun 1948

Taxation - Federal Income Tax - Choice Of Remedies-Tax Court Or District Court, Samuel N. Greenspoon S.Ed.

Michigan Law Review

Plaintiff, in 1935, purported to set up a trust of $300,000 for the benefit of her infant daughter; and thereafter in 1936 paid the gift tax thereon. She then borrowed from the trustee; (herself and husband) $298,000 of the trust corpus. In 1938 she paid $35,760 interest to the trustees and attempted to deduct it as an expense. This deduction was disallowed and the plaintiff then filed in the Tax Court a petition for redetermination on the ground that the gift tax of 1936 had been erroneously paid and should now be allowed as a credit against the assessed deficiency …

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Taxation-Estate Tax-Reservation Of Power To Amend Trust, Samuel N. Greenspoon S.Ed. May 1948

Taxation-Estate Tax-Reservation Of Power To Amend Trust, Samuel N. Greenspoon S.Ed.

Michigan Law Review

Settlor executed a trust indenture in 1915 whereby a trust was established for the benefit of his three minor children. Income was to be accumulated for the benefit of the three children until they respectively attained majority, and provision was made for the death of any child under 21 without surviving issue. The settlor then reserved "the power from time to time by an instrument in writing signed by me to amend this trust instrument so that it will more clearly express my actual intentions if I shall consider such amendments advisable, as to which I shall be the sole …

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Significant Developments In The Law Of Federal Taxation, 1941-1947: I, Paul G. Kauper Apr 1947

Significant Developments In The Law Of Federal Taxation, 1941-1947: I, Paul G. Kauper

Michigan Law Review

A preliminary word on the scope of this review is in order. Since this was originally prepared as one of a series designed to acquaint returning veterans with legal developments during the war period, the year 1941 has been chosen as the starting point, and the review carried forward from that point through to date. The review covering this period is limited to significant developments in the area of federal taxation, with emphasis upon the estate, gift, and income taxes.

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Application Of Federal Income, Estate And Gift Tax Laws To Community Property, Willard S. Pedersen Jan 1947

Application Of Federal Income, Estate And Gift Tax Laws To Community Property, Willard S. Pedersen

Michigan Law Review

The ganancial or community concept of property ownership, by which husband and wife have equal, vested, undivided, one-half interests in property held by them as tenants in community, has been a thorn in the side of federal tax laws ever since some tax-conscious community income earner decided to report as taxable only one-half of the community income, leaving the other half to be reported by and taxed to his wife upon her separate return. Such procedure first became authorized in community property jurisdictions recognizing the wife's interest as "vested" in 1920. Not long thereafter the realization began to dawn upon …

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Taxation-Federal Gift Tax-Life Insurance Policies, John W. Riehm S.Ed. Jan 1947

Taxation-Federal Gift Tax-Life Insurance Policies, John W. Riehm S.Ed.

Michigan Law Review

On December 19, 1930 the petitioner created two trusts, placing in the first five $100,000 life insurance policies on the life of her husband, and in the second, securities, the income from which was to pay premiums on the policies, excess if any to be paid to the petitioner; after the death of her husband the whole of the income from the securities was to be paid to her for life. On death of the husband the proceeds of the life insurance policies were to be used to provide life estates for four named beneficiaries followed by remainders over; and …

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Taxation-Administrative Law-Judicial Review Of Determinations Of United States Tax Court-The Rule Of The Dobson Case, Rosemary Scott S.Ed. Dec 1946

Taxation-Administrative Law-Judicial Review Of Determinations Of United States Tax Court-The Rule Of The Dobson Case, Rosemary Scott S.Ed.

Michigan Law Review

In the field of administrative tax law there is no more intriguing subject for speculation than the scope of judicial review of decisions of the United States Tax Court as sought to be delineated in Dobson v. Commissioner three years ago. The case was a valiant attempt to limit the scope of review of appellate courts by defining the area in which the findings of the Tax Court would be conclusive. The task was an impossible one at the outset because of the lack of standard definition, except at the core, of the flexible and fluid concepts of "findings of …

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Taxation--Estate Tax--Transfers Taking Effect At Death--Hallock Doctrine, John W. Riehm Dec 1946

Taxation--Estate Tax--Transfers Taking Effect At Death--Hallock Doctrine, John W. Riehm

Michigan Law Review

In 1925 and 1926 decedent and his wife created two trusts, decedent contributing 80 per cent, and his wife 20 per cent. Each trust provided for income to the wife during decedent's life, and on his death income was to be divided between the wife and a daughter or go to the survivor for life. On the death. of the survivor of the wife and daughter the corpus was to be distributed "According to the Statutes of descent and distribution of the State of Ohio, to the heirs at law of [decedent] and [wife], providing the heirs of [decedent] and …

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Taxation - Estate Tax - Inclusion In Gross Estate Of Trust Where Decedent Retained Power To Terminate, Edward P. Dwyer, Jr. S.Ed. Dec 1946

Taxation - Estate Tax - Inclusion In Gross Estate Of Trust Where Decedent Retained Power To Terminate, Edward P. Dwyer, Jr. S.Ed.

Michigan Law Review

In 1935 the settler irrevocably conveyed to himself as trustee in trust for his sons corporate stocks, which upon termination of the trust were to be distributed to named beneficiaries other than the settlor. The settlor reserved power during his lifetime to terminate any of the trusts and distn1mte the principal to beneficiaries then entitled to receive it. Each trust was to continue for fifteen years unless earlier terminated by the grantor. He retained no power to revest in himself or his estate any portion of the corpus or income. The Tax Court and the Circuit Court of Appeals for …

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Trusts And Estates-Trends In The Law: 1941-1945 (A Service For Returning Veterans), Lewis M. Simes Apr 1946

Trusts And Estates-Trends In The Law: 1941-1945 (A Service For Returning Veterans), Lewis M. Simes

Michigan Law Review

In every generation there are some judicial decisions so revolutionary that any summary of developments in the law, regardless of its author or of its brevity, would include them. Such cases as Erie Railroad v. Tompkins and Williams v. North Carolina will fall into this category no matter who lines up the materials. But such avulsive changes rarely if ever occur in the law of Trusts and Estates; and it is anybody's guess to determine the significant aspects of the day-to-day accretions which actually take place. Thus, the writer has no illusions that he is singling out the trends as …

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Taxation-Federal Estate Tax-Transfer In Contemplation Of Death-Release Of A Power To Amend, Milton D. Solomon S.Ed. Apr 1946

Taxation-Federal Estate Tax-Transfer In Contemplation Of Death-Release Of A Power To Amend, Milton D. Solomon S.Ed.

Michigan Law Review

Decedent, an attorney, in 1925, at the age of sixty-nine, established two spendthrift trusts-one for his daughter and one for his son. In 1934, he added securities to these trusts. Gift taxes were paid on these transfers. These gifts were made to support decedent's children and grandchildren and were intended to be free of all claims, tax or otherwise. Decedent retained a power to amend these trusts with the consent of the trustee and beneficiary but he believed, at the time, that the trust property would not be included in his gross estate for federal estate tax purposes. In 1937, …

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Taxation-Federal Estate Tax-Constitutionality Of Community Property Provisions Of Revenue Act Of 1942, Milton D. Solomon S.Ed. Feb 1946

Taxation-Federal Estate Tax-Constitutionality Of Community Property Provisions Of Revenue Act Of 1942, Milton D. Solomon S.Ed.

Michigan Law Review

Under Section 811 (e)(2), (g)(4) of the Internal Revenue Code, as amended by sections 402 and 404 of the Revenue Act of 1942, the Commissioner, in assessing an estate tax deficiency, included in decedent's gross estate all community property and insurance proceeds paid for with community funds. The decedent's estate filed claim for refund and the district court found for the petitioner. Held, the tax does not violate the due process clause of the Fifth Amendment nor does the taxing statute contravene Article I, Section 8 of the Constitution which requires that, "Excises shall be uniform throughout the United …

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Taxation-Federal Estate Tax-Reversionary Interests Under The Rule Of The Hallock Case-Valuation, Joseph R. Brookshire S.Ed. Feb 1946

Taxation-Federal Estate Tax-Reversionary Interests Under The Rule Of The Hallock Case-Valuation, Joseph R. Brookshire S.Ed.

Michigan Law Review

In 1929 the decedent established a trust, reserving a life estate in the income. On the termination of this life estate, the income was payable in equal amounts to the decedent's daughters. If either daughter died, that part of the corpus supporting the share of income of the deceased daughter was to go to her descendants; if none, then to the other daughter or her descendants. If both of the daughters died without issue, the corpus was to be paid to such persons as decedent appointed by will; if no appointment was made, the corpus was to go to certain …

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Future Interests - Taxation - Evidence - Presumption As To The Possibility Of A Woman Bearing Children, Hobart Taylor, Jr. Aug 1943

Future Interests - Taxation - Evidence - Presumption As To The Possibility Of A Woman Bearing Children, Hobart Taylor, Jr.

Michigan Law Review

Testatrix, a resident of Massachusetts, set up a trust of her residuary estate for her two daughters, the principal to be paid to their issue, but if either should die without issue, her share to be paid to certain named charities. On probate, the remainder to charity was held to be void. The income tax law of Massachusetts imposed a three per cent levy on income accumulated for contingent future interests, but exempted from taxation certain interests of nonresidents, including vested remainders not subject to being divested. The daughters, nonresidents, contended that their interests should not be taxed as contingent …

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Taxation - Federal Gift Tax - Integration With Income Tax, Katherine Kempfer Dec 1942

Taxation - Federal Gift Tax - Integration With Income Tax, Katherine Kempfer

Michigan Law Review

Beck in 1935 created an irrevocable funded insurance trust of $172,000 in securities together with seven policies of insurance on his life. The income from the securities was to be applied to pay the premiums on the policies and any surplus was to be distributed to his wife and daughter. At grantor's death the proceeds of the policies were to be added to the corpus of the trust and all income was to go to the same beneficiaries for life with remainders over. There was no possibility of reverter in the grantor and no right to alter, modify or revoke …

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The Revenue Act Of 1942: Federal Estate And Gift Taxation, Paul G. Kauper Dec 1942

The Revenue Act Of 1942: Federal Estate And Gift Taxation, Paul G. Kauper

Michigan Law Review

The Revenue Act of 1942 marks important changes in the substantive law. Most of these changes have been obscured by the publicity accorded the higher rates and other features that distinguish it as the first great taxing measure borne out of the travail of the present conflict. Yet it is remarkable that despite the urgency of the need for war revenues, time and effort should have been expended by Congressional committees and Treasury officials in working out with care and thought revisions that constitute a notable contribution to the clarification and restatement of the substantive law of federal taxation. Important …

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Executors And Administrators - Double Domicile - Inheritance Taxation Of Intangibles, Robert Walsh Aug 1942

Executors And Administrators - Double Domicile - Inheritance Taxation Of Intangibles, Robert Walsh

Michigan Law Review

Plaintiff was appointed executor by a Georgia court which found that decedent had been domiciled in Georgia. Defendant was appointed administrator by a New York court which found that decedent was domiciled in New York. Plaintiff and defendant were interpleaded in the Delaware court by a Delaware corporation to determine who was entitled to shares of stock owned by decedent in the Delaware corporation. Plaintiff claimed that the Delaware court was required to give full faith and credit to the Georgia finding that decedent was domiciled in Georgia. The Supreme Court of Delaware found that decedent was domiciled in New …

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Taxation - Federal Estate Tax - Powers Of Appointment - When Property Subject Thereto Is Taxable As Part Of Donee's Estate - Effect Of A Compromise, Charles J. O'Laughlin Jun 1942

Taxation - Federal Estate Tax - Powers Of Appointment - When Property Subject Thereto Is Taxable As Part Of Donee's Estate - Effect Of A Compromise, Charles J. O'Laughlin

Michigan Law Review

The decedent was a beneficiary of a trust established by his father and of two other trusts created by his mother. From his father's trust the decedent was to receive a portion of the income prior to his twenty-eighth birthday, when he was to receive the principal and accumulated income. His mother's trusts gave him the income for life, subject to certain restrictions before he attained the age of twenty-eight. Under all three trusts he had a general testamentary power of appointment. In case of nonexercise of this power, decedent's descendants were to be default takers under the donor's will, …

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Federal Estate And Gift Taxation: A Review, Paul G. Kauper Apr 1942

Federal Estate And Gift Taxation: A Review, Paul G. Kauper

Michigan Law Review

Today's tax-encumbered citizen is not only aware that death and taxes are certain but also realizes that they walk hand-in-hand. At the most he may experience a sense of nostalgic grief over Pliny the Younger's argument that an inheritance tax "is an 'unnatural' tax, since it augments the grief and sorrow of the bereaved." He knows that as a matter of history Pliny's argument, however touching and delicate, has not deterred ways and means committees, intent on meeting revenue needs.

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Taxation - Annuity Contracts - Federal Estate Tax, Charles J. O'Laughlin Apr 1942

Taxation - Annuity Contracts - Federal Estate Tax, Charles J. O'Laughlin

Michigan Law Review

The decedent purchased several single-premium annuity contracts, the annuity payments to be made to her for life, and after her death to a designated second annuitant for life. The Board of Tax Appeals ruled that the policy should not be taxed as a transfer to take effect at death. Held, on appeal, the interest passing to the second anuitant at the death of the decedent should be included in decedent's gross estate under the federal estate tax, since it falls within the provision taxing transfers intended to take effect in possession and enjoyment at or after the death of …

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