- 16 - The Courts generally will not recognize a trust for Federal tax purposes if the grantor keeps substantially unfettered powers of disposition or beneficial enjoyment of trust property. See United States v. Noske, 117 F.3d 1053, 1059 (8th Cir. 1997); Paulson v. Commissioner, 992 F.2d 789, 790 (8th Cir. 1993), affg. per curiam T.C. Memo. 1991-508; United States v. Buttorff, 761 F.2d 1056, 1061 (5th Cir. 1985); Schulz v. Commissioner, 686 F.2d 490, 495 (7th Cir. 1982), affg. T.C. Memo. 1980-568; Vnuk v. Commissioner, 621 F.2d 1318, 1320-1321 (8th Cir. 1980), affg. T.C. Memo. 1979-164. Petitioner dealt with the alleged trust property as if it were his own. He continued to live in the Scottsdale residence. He did not change how he conducted his medical practice. He controlled Arivada’s checking account, kept the checkbook, and wrote the checks on the account. There is no evidence that Chisum wrote or signed any checks on the account. Petitioner contends that Chisum controlled Arivada and managed the financial aspects of petitioner’s medical practice during the years in issue. We disagree. Petitioner’s and Chisum’s testimony was evasive and vague. We need not accept self-serving testimony if we find it to be unworthy of belief, Geiger v. Commissioner, 440 F.2d 688, 689-690 (9th Cir. 1971), affg. per curiam T.C. Memo. 1969-159; Tokarski v. Commissioner, 87 T.C. 74, 77 (1986). Petitioner offered no documentary evidence showing that Chisum provided services to Arivada.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011