¶1dissenting: The amounts distributed by the guardian to the husband and the daughters were transfers without “an adequate and full consideration in money or money’s worth” and, therefore, by reason of section 503 of the Revenue Act of 1932, they should “be deemed a gift.” Furthermore, I think the order of the state court does not per se establish that the transfer was in discharge of an obligation or that it was other than a gift under the revenue act.
41 B.T.A. 515
Lester v. Commissioner
United States Board of Tax Appeals
Decided March 5, 1940
United States Board of Tax Appeals · decided 1940-03-05
1. When the property of an incompetent is placed in the hands of a court, the court acts for and in the place and stead of the incompetent. Held: the action of the state court is final and binding on the Board. Such allowances being in recognition and satisfaction of an obligation imposed by law, they do not constitute gifts. 3.
Cited by 2 later decisions — most recently February 1948
Good law ✅— No negative treatment on recordhow we know
Decided 1940-03-05
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