Monday, November 11, 2013

Holtz’s Estate v. Commissioner case brief

Holtz’s Estate v. Commissioner case brief summary
38 T.C. 37 (1962)

Petitioner estate taxpayer sought review of a decision by respondent Internal Revenue Service (IRS) which determined deficiencies in gift tax against the estate taxpayer.


The estate taxpayer was the executor under the will of a deceased trust settlor and filed gift tax returns on his behalf. The IRS determined deficiencies in gift tax owed by the estate taxpayer and the estate taxpayer appealed.


  • On review, the court considered whether the transfers of certain property in trust, made by the deceased trust settlor were completed gifts for purposes of federal gift tax. 
  • The court stated that the deceased trust settlor did not reserve the power in himself alone to modify, alter, or revoke the trust and thus re-vest the trust property in himself. 
  • The court held that the discretionary power placed in the trustee by the deceased trust settlor under the terms of the trust agreement made the gifts of the remainder interests incomplete for gift tax purposes.

The court ruled against the IRS in the estate taxpayer's appeal of the IRS's determination of gift tax deficiencies.

Suggested Study Aids For Wills, Trusts & Estate Law

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