From our private database of 35,600+ case briefs...
Commissioner v. Herr
United States Court of Appeals for the Third Circuit
303 F.2d 780 (1962)
Facts
Robert Herr (plaintiff) created trusts for his grandchildren. While the trust beneficiaries were minors, a trust’s income could be distributed to the beneficiary if needed for support or maintenance. Otherwise, the trustee would accumulate the trust’s income and pay all accumulated income to the beneficiary at age 21. After age 21, the beneficiary would receive income payments until age 30, when the beneficiary would receive the entire trust property. The commissioner of Internal Revenue (commissioner) (defendant) determined that Herr’s gifts to the trusts were future interests and, therefore, that they did not qualify for the annual gift-tax exclusion. Herr petitioned the United States Tax Court for a determination that, under 26 U.S.C. § 2503(c), a portion of the gift—the beneficiaries’ rights to receive income before they turned 21—qualified for the exclusion. Herr argued that a right to receive income while a minor was a present property interest that could be separated from the other gifted property interests. The Tax Court ruled that the beneficiaries’ interests in potential income while they were minors were deductible, present interests. The commissioner appealed.
Rule of Law
Issue
Holding and Reasoning (Goodrich, J.)
What to do next…
Here's why 618,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.