- 10 -
the claim. However, the Tax Court “is not conclusively bound by
a State trial court adjudication of property rights or
characterization of property interests when the United States is
not a party to the proceeding.” Estate of Rowan v. Commissioner,
54 T.C. 633, 637 (1970) (citing Commissioner v. Estate of Bosch,
387 U.S. 456 (1967)). Rather, we are to give the decision of the
court “proper regard”. Commissioner v. Estate of Bosch, supra at
465. As the parties have stipulated that the Probate Division of
the Circuit Court “did not pass upon the merits or the underlying
facts of * * * [Ms. Scott’s] claim” in approving it, we give
little weight to that decision.
Intent is critical in establishing a resulting trust. See
In re Estate of Wilson, supra at 27. Although the requisite
intent that the nominal owner is to hold legal title as trustee
for the supplier of consideration must exist when title is taken,
subsequent conduct of the parties is relevant to the extent it
sheds light upon their intent. See Prassa v. Corcoran, supra at
142. Thus, we consider all of the facts and circumstances,
including subsequent conduct, to determine whether petitioner has
shown by clear and convincing evidence an intent that Ms.
Horstmeier hold legal title to one-half of the Glenview house in
trust for Ms. Scott.
Petitioner alleges that Ms. Scott and Ms. Horstmeier agreed
to purchase the Glenview house jointly in equal shares.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011