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section 501(a). That being so, distributions from the trust are
governed by section 402(a)(1).
The estate argues that the transfers of funds to the
temporary administrator did not constitute distributions
includable in the estate's gross income in either 1988 or 1989.
The estate raises numerous arguments in support thereof. First,
according to the estate, the funds were not distributed within
the meaning of section 402(a)(1) but instead merely transferred
from one custodial arrangement to another. The estate argues
that section 402(a)(1) is inapplicable because there were no
distributions to a "distributee" within the meaning of section
402(a)(1). Additionally, the estate claims that there were no
"distributions" because it was not in either actual or
constructive receipt of the funds.3 Citing New York law, the
estate claims that a temporary administrator is merely the alter
3 Under sec. 1.451-1(a), Income Tax Regs., "Under the cash
receipts and disbursements method of accounting, such an amount
is includible in gross income when actually or constructively
received." Sec. 1.451-2(a), Income Tax Regs., defines
constructive receipt as follows:
Income although not actually reduced to a taxpayer's
possession is constructively received by him in the
taxable year during which it is credited to his
account, set apart for him, or otherwise made available
so that he may draw upon it at any time, or so that he
could have drawn upon it during the taxable year if
notice of intention to withdraw had been given.
However, income is not constructively received if the
taxpayer's control of its receipt is subject to
substantial limitations or restrictions. * * *
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