United States Supreme Court Cases & Opinions

U.S. Supreme Court

Fidelity-Philadelphia Trust Co. v. Rothensies, 324 U.S. 108 (1945)

Fidelity-Philadelphia Trust Co. v. Rothensies

No. 263

Argued January 4, 5, 1945

Decided February 5, 1945

324 U.S. 108

Syllabus

Decedent made a transfer of property in trust to pay the income to herself for life, thence to her two daughters, with remainders to the daughters' surviving descendants, but if both daughters should die without descendants surviving, the corpus was to go to such persons as the decedent should appoint by will. Decedent exercised the power of appointment by will and predeceased the daughters.

Held:

1. The transfer was "intended to take effect in possession or enjoyment at or after (decedent's) death," within the meaning of § 302(c) of the Revenue Act of 1926. P. 324 U. S. 110.

2. The value at the date of the death of the decedent of the entire corpus of the trust was includible in the gross estate of the decedent for the purpose of the estate tax under the 1926 Act. P. 324 U. S. 111.

Under § 302(c), the taxable gross estate must include those property interests the ultimate possession and enjoyment of which is held in suspense until the moment of the grantor's death or thereafter.

3. There was no basis for deduction from the decedent's gross estate of the values of the estates of the daughters or their descendants. P. 324 U. S. 112.

142 F.2d 838 affirmed.

Certiorari, 323 U.S. 693, to review the affirmance of a judgment denying recovery in a suit for refund of federal estate taxes.

Page 324 U. S. 109