United States Supreme Court Cases & Opinions

U.S. Supreme Court

Commissioner v. Wemyss, 324 U.S. 303 (1945)

Commissioner v. Wemyss

No. 629

Argued January 9, 1945

Decided March 5, 1945

324 U.S. 303

Syllabus

1. Pursuant to an antenuptial agreement, respondent made a transfer of property to his prospective wife in consideration of her promise of marriage and to compensate for her loss of trust income which upon her marriage would go to a child by a former marriage. Held, that, under §§ 501 and 503 of the Revenue Act of 1932 and applicable Treasury Regulations, the transfer was a taxable gift in its entirety. P. 324 U. S. 306.

2. The decision of the Tax Court that the transfer was not made for a "consideration in money or money's worth" within the meaning of § 503 is binding on review. P. 324 U. S. 307.

3. To relieve a transfer from the gift tax under the Revenue Act of 1932, there must be a consideration in money or money's worth of benefit to the transferor; detriment to the transferee is insufficient. P. 324 U. S. 307.

144 F.2d 78 reversed.

Certiorari, 323 U.S. 703, to review the reversal of a decision Of the Tax Court, 2 T.C. 876, sustaining the Commissioners determination of a deficiency in federal gift taxes.