TAXATION -TAXABILITY OF INTER VIVOS TRUST WITH POWER OF REVOCATION RESERVED

Authors

Abstract

In 1918 decedent established a trust fund in favor of his daughter, reserving the power to alter or modify the deed in favor of anyone except himself but retaining neither the life income nor any interest in the res. Later decedent revoked the deed and re-established the trust in favor of the daughter's two children. On decedent's death the Commissioner of Internal Revenue included the value of the trust res in decedent's gross estate for purposes of taxation as provided by the Revenue Act of 1926 § 302(d). Held, that the tax was not repugnant to the Fifth Amendment of the Constitution because the tax is imposed on the ability of the transferor to determine the final disposition of his property and thus reaches what Congress might reasonably deem a testamentary disposition. Porter v. Commissioner of Internal Revenue, 23 Bd. of Tax Appeals 1016 (1931), appealed to C. C. A. 2d (1932), appealed to 288 U.S. 436, 53 Sup. Ct. 451 (1933).

Recommended Citation

TAXATION -TAXABILITY OF INTER VIVOS TRUST WITH POWER OF REVOCATION RESERVED, 32 Mich. L. Rev. 563 (1934).
Available at: https://repository.law.umich.edu/mlr/vol32/iss4/22