Taxation-Federal Estate and Gift Commons^™

Florida Affords The Ohio Resident Relief From The Problem Of Multiple Inheritance Taxation, George Rubin

Cleveland State Law Review

The transfer or succession of real property and tangible personal property is taxable by the state where it is located irrespective of the domicile of the decedent, and the transfer or succession of intangible personal property maybe taxed by the state where the decedent was domiciled at the time of his death. It becomes clear then that the state must establish the domicile of the decedent at the time of his death in order to impose an inheritance tax on the transmission or right of transmission of the intangible personal property. The problem arises in those cases where a decedent …

Taxation-Federal Estate Tax-Taxability Of Joint And Survivor Annuity Paid Pursuant To Pension Plan, Lawrence M. De Vore S.Ed.

Michigan Law Review

Under a pension and retirement plan, decedent had the option of receiving a pension for life or a smaller pension while both he and his wife lived, with two-thirds of such reduced pension payable to the survivor for life. On decedent's normal retirement date he chose the latter. Decedent did not retire but continued working until his death. His wife was then entitled to receive a monthly income for life under the pension plan. The Commissioner of Internal Revenue determined that the value of the wife's annuity should be included in the decedent's gross estate. Plaintiff instituted action for refund …

Estate And Gift Taxation Of The Marital Community: Integration Or Disintegration?, Brockman Adams

Washington Law Review

Prior to 1948 it was immediately apparent that any discussion of federal estate and gift taxation had to be divided into the two categories of community property and common law Though an obvious attempt has been made to eliminate the major differences in tax treatment of the two systems, there are still many distinctions which do not meet the eye on a casual reading of the statute. The average practitioner, and for that matter the average "tax lawyer," does not have time to explore the technicalities of the new marital deduction "equalizer" let alone suggest necessary revisions. This article is …

Obtaining The Gift Tax Exclusion On Gifts In Trust: Drafting And Legislative Suggestions, Zolman Cavitch

Michigan Law Review

The purposes of this article are to outline the "future interest" pitfalls in the use of various conventional trust provisions, to explore remedial drafting possibilities even under the present law, and to suggest a statutory amendment which will eliminate the fundamental defects of the present poorly-drafted law.

Taxation-Federal Estate Tax-Use Of Actual Life Expectancy Without Reference To Actuarial Tables In Valuing Charitable Remainder, Gene E. Overbeck S.Ed.

Michigan Law Review

Decedent, Nicholas Murray Butler, died testate on December 7, 1947. He bequeathed property to trustees, directing that the income be paid to his wife, Kate, for life, and upon her death the trust to terminate and a stipulated portion of the corpus be paid to the trustees of Columbia University. Held, the facts in existence at the time of decedent's death were such as to render it certain that Kate La Montagne Butler would not live more than one year after decedent's death, hence it was proper to use that expectancy, without reference to actuarial tables, in valuing the …

Title Examinations As Affected By The Federal Gift And Estate Tax Liens, L. Hart Wright

Michigan Law Review

The Treasury Department may look to either of two security devices to protect its rights with respect to federal gift and estate taxes. The most sweeping of these devices-the general federal tax lien, a discussion of which appeared in the last issue of this Review, has been complemented in the case of each of these taxes by special liens, presumably designed to meet what apparently were considered peculiar needs. It is with the impact of these special liens on the work of title examiners that this article is concerned.

Taxation-Federal Income Tax-Deductibility Of Legal Fees Incurred In Contesting Gift Tax Deficiency, Richard B. Barnett S.Ed.

Michigan Law Review

Petitioner gave shares of stock in a closely held family corporation to his wife and children. After paying the federal gift tax, he was notified by the Commissioner of a deficiency of $145,276. The case was eventually settled by payment of $15,612. In this controversy petitioner incurred legal expenses which he sought to deduct on his income tax return under section 23(a)(2) of the Internal Revenue Code. When his claim was disallowed by the Commissioner, this suit was brought for refund. Held, on certiorari, this expenditure was not "for the production or collection of income'' nor incurred in the …

The Second Circuit Reaffirms The Efficacy Of Restrictive Stock Agreements To Control Estate Tax Valuation, Edmund W. Pavenstedt

Michigan Law Review

Owners of close corporations have for many years entered into agreements with each other requiring a stockholder who wishes to dispose of his holdings first to offer them to his fellow stockholders or to the corporation and, in the case of death, granting to the survivors or the corporation an option to buy the shares from the decedent's estate. Such agreements either fix a price per share or contain a formula or a provision for appraisal under which such price is to be determined. About twenty years ago two leading cases both decided by the United States Court of Appeals …

Apportionment Of The Federal State Tax In The Absence Of Statute Or An Expression Of Intention, William P. Sutter

Michigan Law Review

Federal law now provides in sections 826 (c) and (d) of the Internal Revenue Code that life insurance and property transferred by appointment shall bear their proportionate tax burden. It does not contain similar provisions with respect to other types of non-probate property. At the present time, twenty states provide by statute for some sort of apportionment of estate taxes. Two states have statutes restricting apportionment in some degree. In the rest, the matter rests in the discretion of the courts. I propose to discuss in this article the situation in those areas where no statutory guidance exists.

Taxation-Federal Estate And Gift Taxation-Powers Of Appointment Act Of 1951, William O. Allen S. Ed.

Michigan Law Review

It is the purpose of this comment to trace the history of Congress' treatment of powers of appointment in the past and to examine the latest legislative pronouncement, the Powers of Appointment Act of 1951.

Death And Taxes-Code Section 126 And The Developing Taxable Income Concept

Indiana Law Journal

No abstract provided.

Book Reviews, Jerome Frank, Edmond Cahn, Jay Wesley Murphy, Delmar Karlen, Lehan K. Tunks, Thomas A. Thomas, John W. Wade, Robert C. Bensing, Ralph R. Neuhoff, Allan D. Vestal, Edward D. Re, Thomas I. Emerson, John J. Parker

Journal of Legal Education

No abstract provided.

Estate Tax: United States V. Jacobs - Petition For Legislative Review, Rita Rogers Brandt

William and Mary Review of Virginia Law

No abstract provided.

A New Seminar In Taxation At The University Of Pennsylvania, Paul W. Bruton, Raymond J. Bradley

Journal of Legal Education

No abstract provided.

Book Reviews, Henry H. Foster Jr., John Honnold, Robert Braucher, Laurence M. Jones, Robert R. Wilson, Norman D. Lattin, Paul W. Bruton

Journal of Legal Education

No abstract provided.

What You Should Know About Estate And Gift Taxes, By J.K. Lasser, Phillip Z. Leighton

Indiana Law Journal

No abstract provided.

Book Reviews, George H. Pickar, Edward L. Barrett Jr., Rudolph Heitz, Charles E. Corker, Warren M. Ballard, W. F. Zacharias, Stefan A. Riesenfeld, Julius Cohen, Charles A. Reynard, Robert Kingsley, Jacob D. Hyman, James Lake, Arthur W. Stokes, Francis A. Allen, Paul A. Freund, Richard W. Jennings, Joseph E. Goodbar, Kenneth Redden, James A. Rahl, Charles L. B. Lowndes

Journal of Legal Education

No abstract provided.

Taxation-Federal Gift Tax-Transfers Made Pursuant To Postnuptial Separation Agreements, Douglas L. Mann S. Ed.

Michigan Law Review

Taxpayer and her husband entered into a property settlement whereby she agreed to make certain payments to him in return for his promise to relinquish all marital rights in her property. The agreement was not to become operative unless a divorce decree was entered in a then pending action, but it was further provided that "the covenants in this agreement shall survive any decree of divorce which may be entered." The subsequent divorce decree approved the agreement and directed performance of its provisions. The Tax Court, which expunged the gift tax deficiency assessed by the Commissioner, was reversed by the …

Taxation-Income Tax-Taxability Of Payments Made To Widows Of Deceased Employees, Douglas L. Mann S.Ed.

Michigan Law Review

Payments were made by an employer to the widow of a deceased employee in consideration of services rendered by the employee. Held, the payments were includible in the widow's gross income for federal income tax purposes. I.T. 4027, Int. Rev. Bul., Oct. 16, 1950, 2, 505 CCH ¶6208.

The Limitation Of Taxation Of Transfers In Contemplation Of Death By The Revenue Act Of 1950, Edmund W. Pavenstedt

Michigan Law Review

The Revenue Act of 1950 amended the estate tax provision dealing with transfers in contemplation of death, which has been on the books ever since the estate tax first appeared as a war emergency measure during World War I, by eliminating from this category all transfers made more than three years prior to the date of death. All transfers made within that period are deemed under the new law to have been made in contemplation of death (and hence are includible in the transferor's gross estate) unless the contrary is shown. Such a rebuttable presumption formerly was limited by the …

The Limitation Of Taxation Of Transfers In Contemplation Of Death By The Revenue Act Of 1950, Edmund W. Pavenstedt

Michigan Law Review

The Revenue Act of 1950 amended the estate tax provision dealing with transfers in contemplation of death, which has been on the books ever since the estate tax first appeared as a war emergency measure during World War I, by eliminating from this category all transfers made more than three years prior to the date of death. All transfers made within that period are deemed under the new law to have been made in contemplation of death (and hence are includible in the transferor's gross estate) unless the contrary is shown. Such a rebuttable presumption formerly was limited by the …

Gifts For The Benefit Of Minors, Austin Fleming

Michigan Law Review

Primarily because of tax incentives, lifetime gifts have become increasingly popular in recent years among persons of wealth. Until the Revenue Act of 1948, such gifts were frequently made between spouses. But the tax advantages of interspousal gifts were greatly lessened by the split-income privilege and the marital deduction, and a new inducement was given to gifts to third persons by the establishment of the right to treat such gifts as being one half from each spouse. As a result, gifts to children and grandchildren have taken on new prominence.

Tax Problems Involved In Administration, Byron E. Bronston

Articles by Maurer Faculty

No abstract provided.

Personal Property-United States Savings Bonds--Effect Of Registration In Co-Ownership Or Beneficiary Form As A Transfer Of A Property Interest Therein, Walter L. Dean

Michigan Law Review

In two recent cases, decedents purchased United States Savings Bonds registered in the name of the purchaser and another person which were never delivered to the named co-owner but remained in the possession of the purchaser until his death. In the first case, on appeal from an order of the district court refusing to impose an inheritance tax on the bonds after the death of the purchaser, held, reversed. Mere purchase of the bonds and their registration in the names of the co-owners without delivery transferred no interest to the co-owners during the life of the purchaser and is …

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.

The Tangibles-Intangibles Distinction

Indiana Law Journal

Recent Cases: Taxation

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 …

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 …

The Constitutionality Of The New Federal Estate Tax Definition Of A Transfer Taking Effect At Death, Charles L.B. Lowndes

Vanderbilt Law Review

The manifest reluctance in recent years on the part of the Supreme Court to declare any provision of the Federal Estate Tax unconstitutional may have given rise to the assumption that there are no constitutional limitations on the transfers which Congress can tax under the estate tax. One of the 1949 amendments to the tax should test the validity of this assumption. In an effort to bring some order out of the chaos stemming immediately from Helvering v. Hallock, and immediately from Spiegel's Estate v. Commissioner, Congress provided recently that a transfer after October 7, 1949, shall be deemed to …

The Effect Of Renunciations And Compromises On Death And Gift Taxes, Walter E. Black Jr.

Vanderbilt Law Review

When a man dies, it must be decided how his property shall be distributed. Ordinarily, the distribution will follow his express intention as evidenced in a will or the presumed intention of the state laws of intestacy. In these ordinary situations, the state death tax is applied to the various legacies and devises and to the property passing by descent in the manner provided by the state tax statutes. Thus, the majority of testamentary distributions are carried out without any state death tax problems.

However, in some cases, events occur after the death of the decedent which change the testator's …