United States v. Farish
| Decision Date | 26 April 1966 |
| Docket Number | No. 22261.,22261. |
| Citation | 360 F.2d 595 |
| Court | U.S. Court of Appeals — Fifth Circuit |
| Parties | UNITED STATES of America, Appellant, v. ESTATE of Stephen P. FARISH, Jr., Deceased, Anne Francis Farish, Independent Executrix, Appellee. |
Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson, Atty., Dept. of Justice, Washington, D. C., James R. Gough, Asst. U. S. Atty., Houston, Tex., Robert N. Anderson, Benjamin M. Parker, Attys., Dept. of Justice, Washington, D. C., Richard M. Roberts, Acting Asst. Atty. Gen., Meyer Rothwacks, Atty., Dept. of Justice, Washington, D. C., Woodrow B. Seals, U. S. Atty., for appellant.
John G. Heard, Carl Estes, II, Houston, Tex., Vinson, Elkins, Weems & Searls, Houston, Tex., of counsel, for appellee.
Before HUTCHESON and THORNBERRY, Circuit Judges, and WEST, District Judge.
This appeal is from a district court determination that certain properties held in trust for the decedent, Stephen P. Farish, Jr., are not within his taxable estate. Convinced that this decision was correct, we affirm.
The material facts are not in dispute and may be simply stated. Stephen P. Farish, Jr. was the sole beneficiary of three trusts (Trusts 1, 2 and 3) established by his parents in the 1930's. All three trusts provided for gifts over on certain contingencies; the gift over provisions of Trusts 2 and 3 are identical, but are different from that of Trust 1. Farish died at age 31 without having received any of the respective trust estates.
Farish's wife survived him and was named independent executrix under his will. Mrs. Farish, as executrix, made demands on the trustees of all three trusts for delivery of the properties held in trust for her husband. Only the trustee of Trust 1 complied with her demands. The trustees of Trusts 2 and 3 asserted that Farish's interest in those trusts was conditioned on final distribution to him before his death; that his interest in the trusts terminated on his death before distribution; and that therefore he had no interest in the trusts to which Mrs. Farish, as executrix, was entitled. The trustees of Trusts 2 and 3 then filed declaratory judgment actions in a Texas state district court for an interpretation of the respective trust indentures, naming as defendants Mrs. Farish and her three children, who were the beneficiaries under the gift over provisions. All parties were represented by counsel, and the case was fully presented and argued to the court. The state district court held that Farish had but a defeasible interest in Trusts 2 and 3, conditioned on delivery to him before his death, and that his interest terminated upon his death prior to actual delivery. No appeal was taken and this judgment became final.
Mrs. Farish then filed an amended estate tax return, including in her husband's estate the assets of Trust 1. The Commissioner determined a substantial deficiency, primarily as a result of his inclusion in the taxable estate of the properties of Trusts 2 and 3. The Commissioner argued that Farish's interest in the trusts was an indefeasible one at the time of his death, and thus within his taxable estate. Mrs. Farish paid the deficiencies, was denied refund, and brought this suit.
The district court filed a very complete and well-reasoned opinion.1 The...
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Moore v. Campbell
...in Freuler v. Helvering, 291 U.S. 35, 54 S.Ct. 308, 78 L.Ed. 634, cited in Farish v. United States, (D.C.,) 233 F.Supp. 220, aff'd 360 F.2d 595 (5 Cir., 1966), held that the good faith and judicial character of a judgment of a state court settling property rights under a trust is not lightl......
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...and n. 3 (1972); Blair v. Commissioner of Internal Revenue, 300 U.S. 5, 9-10, 57 S.Ct. 330, 332, 81 L.Ed. 465 (1937); United States v. Farish, 360 F.2d 595 (5th Cir.1966).7 Cafeteria and Rest. Wkrs. U., Local 473 v. McElroy, 367 U.S. 886, 894-95, 81 S.Ct. 1743, 1748, 6 L.Ed.2d 1230 (1961); ......
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Kiker v. Hefner
...5 Cir. 1954, 213 F.2d 776, 779. See also, Estate of Farish v. United States, S.D. Texas 1964, 233 F.Supp. 220, 225; affirmed, 5 Cir. 1966, 360 F.2d 595. Secondly, appellant asserts that he could not appeal the district court order dismissing his complaint because the issues would have becom......
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First Nat. Bank of Fort Worth v. United States
... ... The regulation in question only spells out what has been said all along by the federal courts as to the conclusiveness of a state court's decision in subsequent federal tax matters. Estate of Farish v. United States, D.C.S.D.Tex., 233 F.Supp. 220, 227 (1964), affirmed, 5 Cir., 360 F. 2d 595 (1966), and cases cited therein; Colowick, The Binding Effect of a State Court Decision in a Subsequent Federal Income Tax Case, 12 Tax Law Rev. 213 (1957) ... None of the safeguards ... ...