Estate of Marie A. Bies - Page 10




                                               - 10 -                                                  
            property made by a donor to any person in a calendar year is                               
            excluded from taxable gifts.  See sec. 2503(b).                                            
                  As a general rule, we will respect the form of a                                     
            transaction.  We will not apply the substance over form                                    
            principles unless the circumstances so warrant.  See Gregory v.                            
            Helvering, 293 U.S. 465 (1935); Estate of Jalkut v. Commissioner,                          
            96 T.C. 675, 686 (1991).  Courts have applied the substance over                           
            form principles in gift tax cases to determine the real donee and                          
            value of the property transferred.  See, e.g., Heyen v. United                             
            States, 945 F.2d 359, 363 (10th Cir. 1991); Estate of Cidulka v.                           
            Commissioner, T.C. Memo. 1996-149.  In these cases, the indirect                           
            transfers of the property to the intended donees were the result                           
            of a prearranged plan.  See, e.g., Heyen v. United States, supra                           
            at 361 (donor transferred stock to 29 straws who either did not                            
            know they were receiving stock or believed that they were                                  
            participating in stock transfers or had agreed before receiving                            
            the stock to its retransfer, 27 of whom then retransferred the                             
            stock to the donor's intended donees); Estate of Cidulka v.                                
            Commissioner, supra (father's 14 transfers of stock to daughter-                           
            in-law, who, on the same day, transferred the stock to her                                 
            husband, provided "inference" of an "understanding" between                                
            father and daughter-in-law that her shares would be merely a                               
            pass-through of shares to her husband).                                                    








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011