United States v. Allen
United States Court of Appeals for the Tenth Circuit
293 F.2d 916 (1961)
Maria Allen created an irrevocable trust during her life. Allen made herself an income beneficiary entitled to three-fifths of any trust income during her lifetime, with her children as remaindermen. Allen did not wish for the property transferred to the trust to be included in her gross estate when she died. To avoid that inclusion, Allen sold her right to three-fifths of the trust income for her life for its fair actuarial value. Allen was 78 at the time she sold her life estate in the income, and her advanced age caused the actuarial value of the interest to be substantially less than three-fifths of the value of the transferred property. Shortly after selling her income interest, Allen discovered that she was ill and died. The Internal Revenue Service (IRS) (defendant) determined that Allen’s estate (plaintiff) must include three-fifths of the corpus of the trust in Allen’s gross estate. The estate disagreed. The estate paid the taxes as determined by the IRS and sued for a refund in district court. The district court granted the refund, and the IRS appealed.
Rule of Law
Holding and Reasoning (Murrah, C.J.)
Concurrence (Breitenstein, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 723,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 723,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,500 briefs, keyed to 983 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.