Taxation-Federal Estate and Gift Commons^™

Tax Problems Of Revocable Trusts, Byron E. Bronston

Articles by Maurer Faculty

No abstract provided.

Transfers Intended To Take Effect At Or After Death

Indiana Law Journal

Recent Cases: Taxation

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, …

Options And Valuation Of Property For Federal Tax Purposes, William J. Bowe

Vanderbilt Law Review

In Estate of John Q. Strange, there was an agreement between two brothers, engaged in business in a close corporation, which provided that upon the death of either, the survivor might acquire the stock of the other upon payment of $10,000 to his estate. Payment was so made following the decedent's death. The fair market value of the stock on the date of death was stipulated to be $238,126.54. The Board of Tax Appeals held that the option price of $10,000 was the proper amount to be included in the decedent's gross estate as the value of his stock.

In …

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, …

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 …

Gift Taxability Of Divorce Settlements

Indiana Law Journal

No abstract provided.

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.

Will Renunciation Of A Bequest Or Failure To Claim A Statutory Share Constitute A Taxable Gift?, Daniel D. Canale, Robert E. Cooper

Vanderbilt Law Review

In 1948 the 80th Congress amended the Internal Revenue Code in an effort to eliminate the discrimination theretofore enjoyed by residents of states which had adopted the community property system.' Substantial equalization in the estate and gift tax fields is expected to follow from the marital deduction and "gift tax splitting" privileges. Moreover, these changes have focused attention upon a problem which caused considerable concern to conservative tax advisors even before the 1948 Tax Amendment. It has long been a doubtful question whether the renunciation of testamentary benefits would be held to constitute a taxable gift. The Act and the …

Book Reviews, Philip A. Hendrick, Charles L.B. Lowndes (Reviewer), Adrian W. Dewind (Reviewer), Chas. A. Morehead (Reviewer), John R. Stivers (Reviewer)

Vanderbilt Law Review

An Estate Planner's Handbook By Mayo Adams Shattuck

Boston: Little, Brown & Company, 1948. Pp. 575. $7.50

reviewer: Philip A. Hendrick

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Estate Planning and Estate Tax Saving By Edward N. Polisher

Philadelphia: George T. Bisel Company. Second Edition, 1948. 2 Volumes. Pp. xxxii, 923. $20.00

reviewer: Charles L.B. Lowndes

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Federal Taxes--Corporations and Partnerships, 1948-49 By Robert H. Montgomery, Conrad B. Taylor and Mark E. Richardson

Vol. I: Gross Income and Deductions Vol. II: Taxes, Returns and Administration New York: The Ronald Press Company, 1948. Pp. xiii, 1001; pp. iv, 881. $20.00

Federal Taxes--Estates, Trusts and Gifts, 1948-49

By …

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 …

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 …

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 …

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 …

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 …

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 …

Stock Redemptions, Merle H. Miller

Indiana Law Journal

No abstract provided.

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.

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 …

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 …

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 …

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 …

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 …

Valuation Of Future Interests For Federal Tax Purposes

Indiana Law Journal

Notes and Comments: Taxation

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, …

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 …

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 …

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 …

An Objective Test Of Transfers In Contemplation Of Death, Ivan C. Rutledge, Charles L.B. Lowndes

Articles by Maurer Faculty

No abstract provided.

What Is A Gift?, Herbert Rand

Kentucky Law Journal

No abstract provided.