ENSLEY ET AL.
v.
DONNELLY, COLLECTOR OF REVENUE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
A note given by a father to his son cannot be deducted as a claim against the estate if it was not incurred for adequate and full consideration in money or money's worth.
A father made annual donations to his daughter and issued notes to his son, which were exchanged annually for larger notes. At the father's death, the…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Adequate And Full Consideration In Money Or Money'S Worth cases and more on FLexlaw
PER CURIAM.
This appeal from the decision of the district judge that it could not he deducted, presents as the sole question whether a note to the extent of $6,000.00,1 given by a father to his son, may be deducted as a claim against the estate, incurred bona fide and for an adequate and full consideration in money or money’s worth, within the meaning of Section 812(b)(3) I.R.C., 26 U.S. C.A. § 812(b)(3).
Upon authority of Taft v. Commissioner of Internal Revenue, 304 U.S. 351, 58 S.Ct. 891, 82 L.Ed. 1393, the question must be answered in the negative and the judgment must be affirmed.
Affirmed.
. The circumstances under which the note was given are these:
Some years prior to his death, Thaddeus L. Ensley instituted the custom of making an annual donation of $500 in cash to his daughter and a note in the sum of $500 each year to his son, George T. Ensley.
The system followed with respect to these notes was that the first year the son received a note for $500; the second year he received a note for $1000, and returned to his father the prior note in the amount of $500; the third year he received a note for $1,500 and returned the prior note in the amount of $1,000. This procedure continued each year until at the time of the father’s death the current note held by the son was in the amount of $0,000.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Lovas v. Gen. Motors Corp., 212 F.2d 805 (6th Cir. 1954)
-
Lones v. Detroit, 398 F.2d 914 (6th Cir. 1968)
-
Eleonora Sitta v. Am. Steel & Wire Div. of United States Steel Corp., 254 F.2d 12 (6th Cir. 1958)
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Taft v. Commissioner of Internal Revenue, 304 U.S. 351 (U.S. 1938)