Rasquin v. Humphreys
| Decision Date | 06 November 1939 |
| Docket Number | No. 37,37 |
| Citation | 308 U.S. 54,84 L.Ed. 77,60 S.Ct. 60 |
| Parties | RASQUIN, Collector of Internal Revenue, v. HUMPHREYS |
| Court | U.S. Supreme Court |
Mr. Frank Murphy, Atty. Gen., and Miss Helen R. Carloss, Sp. Asst. Atty. Gen., for petitioner.
Messrs. Sidney W. Davidson, and Allin H. Pierce, both of New York City, for respondent.
Decision in this case turns on the question, differing only in form from that this day decided in Sanford v. Com'r, Helvering, 308 U.S. 39, 60 S.Ct. 51, 84 L.Ed. 20, whether, in case of an inter vivos transfer of property in trust, reserving to the donor power to designate new beneficiaries other than himself, the gift becomes complete at the time of the creation of the trust and subject to the gift tax imposed by the Revenue Act of 1932.
In December, 1934, respondent created a trust of personal property for his own benefit for life, with remainders over to specified classes of beneficiaries. By the trust indenture he reserved to himself a power to change the beneficiaries of the trust and to prescribe the conditions under which the new beneficiaries should take an interest in the trust, but without any power to increase his own beneficial interest in the trust property.
Respondent paid the gift tax assessed against him with respect to the transfer of the remainder interests upon creation of the trust, and brought the present suit in the district court to recover the tax as illegally collected. Judgment in his favor was affirmed by the Circuit Court of Appeals for the second circuit, 101 F.2d 1012, on the authority of Hesslein v. Hoey, 2 Cir., 91 F.2d 954. We granted certiorari May 22, 1939, 307 U.S. 619, 59 S.Ct. 1034, 83 L.Ed. 1499, so that this case might be considered with the Sanford case.
The gift tax, § 319 et seq. of the 1924 Act, 43 Stat. 313, 26 U.S.C.A. Int.Rev.Acts, page 79 et seq., so far as now material, reappeared in § 501 et seq. of the 1932 Act, 47 Stat. 169, 26 U.S.C.A. Int.Rev.Acts, page 580 et seq. Other pertinent provisions of the earlier act were reenacted without change of present moment in §§ 501, 510, 801, 26 U.S.C.A. Int.Rev.Acts, pages 580, 589, 640. The applicable estate tax provisions are § 302(c)(d) of the 1926 Act, 44 Stat. 40, 71, 26 U.S.C.A. Int.Rev.Acts, pages 227, 228. Section 501(c) of the 1932 Act, 26 U.S.C.A. Int.Rev.Acts, page 580, added a new provision that transfers in trust, with power of revocation in the donor, should be taxed on relinquishment of the power. This was repealed by § 511 of the Act of 1934, 48 Stat. 680, 26 U.S.C.A. Int.Rev.Acts, page 769, because Burnet v. Guggenheim, 288 U.S. 280, 53 S.Ct. 369, 77 L.Ed. 748, had declared that such was the law without specific legislation. H.R. No. 704, 73rd Cong., 2d Sess., p. 40; Sen.Rep. No. 558, 73rd Cong., 2d...
To continue reading
Request your trial
-
Spiegel Estate v. Commissioner of Internal Revenue Commissioner of Internal Revenue v. Church Estate
...This Court Electric Storage Battery Co. v. Shimadzu, 307 U.S. 5, 14, 613, 616, 59 S.Ct. 675, 681, 83 L.Ed. 1071; Rasquin v. Humphreys, 308 U.S. 54, 60 S.Ct. 60, 84 L.Ed. 77; Apex Hosiery Co., v. Leader, 310 U.S. 469, 60 S.Ct. 982, 84 L.Ed. 1311, 128 A.L.R. 1044; Brooks v. Dewar, 313 U.S. 35......
-
Howard v. United States
...276 U.S. 260, 48 S.Ct. 225, 72 L.Ed. 565; Burnet v. Guggenheim, supra; Estate of Sanford v. Commissioner, supra; Rasquin v. Humphreys, 308 U.S. 54, 60 S.Ct. 60, 84 L.Ed. 77. 5 Succession of Hale, 26 La.Ann. 195. 6 Succession of McMahon, 176 La. 63, 145 So. 269; Succession of Ipser, 180 La. ......
-
Gaylord v. Commissioner of Internal Revenue
...U.S. 280, 53 S.Ct. 369, 77 L.Ed. 748; Estate of Sanford v. Com'r, 1939, 308 U.S. 39, 60 S.Ct. 51, 84 L.Ed. 20; Rasquin v. Humphreys, 1939, 308 U.S. 54, 60 S.Ct. 60, 84 L.Ed. 77 and Com'r v. Warner, 1942, 9 Cir., 127 F.2d 913. But repeal of the vital subsection (c) of Section 501 of the Reve......
- Mesa Verde Const. Co. v. Northern California Dist. Council of Laborers