Estate of Fish v. COMMISSIONER OF INTERNAL REVENUE, Docket No. 96527.
| Decision Date | 28 June 1940 |
| Docket Number | Docket No. 96527. |
| Citation | 42 BTA 260 |
| Parties | ESTATE OF ISAAC FISH, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. |
| Court | U.S. Board of Tax Appeals |
Richard H. Levin, Esq., for the petitioner.
Alvin B. Peterson, Esq., for the respondent.
The Commissioner determined deficiencies in decedent's income tax of $1,894.16 for 1934, $1,764.98 for 1935, and $188.85 for 1936, by including in his income the income of a trust.
FINDINGS OF FACT.
Isaac Fish died on April 27, 1936. His wife, Helen S. Fish, survived him. They had no children.
On July 3, 1930, the decedent and his wife executed a trust agreement with the Chicago Title & Trust Co., as trustee, providing in part:
(1) The Trustee shall pay the entire annual net income of said Trust Estate to HELEN S. FISH, during the term of her natural life.
(2) The said Helen S. Fish is hereby given and granted the right and privilege (said right and privilege to be exercised by her as she may in her sole and uncontrolled discretion determine) to demand and receive, in any and every calendar year during her lifetime, such sum or sums of the principal of said Trust Estate, not, however, to exceed in the aggregate five per cent. (5%) of said principal in any one calendar year, said payments of principal to be in addition to any and all payments of income herein provided to be made to her.
(3) Upon the death of the said Helen S. Fish said Trustee shall pay the entire annual net income of said Trust Estate, as said Trust Estate shall at such time be constituted, to ISAAC FISH, during the term of his natural life.
(4) Upon the death of the said ISAAC FISH, or upon the death of the said HELEN S. FISH, in the event the said ISAAC FISH shall have died prior to the death of the said HELEN S. FISH, said Trustee shall pay and distribute said Trust Estate at such time in its possession as follows: to named persons.
* * * * * * *
ISAAC FISH and HELEN S. FISH, the Donors, together, so long as both shall be living, and ISAAC FISH alone, from and after the death of HELEN S. FISH (in the event he shall survive HELEN S. FISH), shall have the right to revoke, alter or amend this Agreement in whole or in part, at any time and from time to time, by a memorandum in writing delivered to the Trustee (provided that the duties, powers and liabilities of the Trustee shall not be materially or substantially changed by such alteration or amendment without its consent thereto in writing), and to authorize and direct the Trustee to assign, transfer, pay over and deliver to their or his order, as the case may be, all or any part of the Trust Estate in such form as it may then exist. Such direction to the Trustee, upon the making of such assignment, transfer, payment or delivery, shall operate as a revocation of this Agreement and of the Trust hereby created, as to the property so assigned, transferred, paid over and delivered by the Trustee.
In the event that the said ISAAC FISH shall die prior to the death of the said HELEN S. FISH, then from and after the death of the said ISAAC FISH this Agreement and the Trust hereby created shall not be revoked, altered or amended in any way.
On December 18, 1933, the decedent and his wife, with the consent of the trustee, amended the trust agreement, changing the provisions for distribution of the estate upon the death of the decedent and upon the death of his wife, if he predeceased her. On September 12, 1934, the decedent and his wife executed an agreement with the trustee settling a dispute over investments made by the trustee which the decedent claimed to have been improper. Prior to October 3, 1934, it was the trustee's practice to notify the decedent only after investments had been made. On October 3, 1934, the agreement was amended to require the decedent's consent and approval prior to investment.
On April 23, 1930, the decedent transferred $55,000 to the trustee out of his personal funds. On July 7, 1930, he and his wife transferred to the trustee securities endorsed in blank, his having a fair market value of $69,578.76 and hers a fair market value of $14,350. The decedent transferred amounts to the trustee out of his own funds as follows:
June 13, 1930 ____________________ $1,500.00
Do _________________________ 661.50
Jan. 8, 1931 _____________________...To continue reading
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