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trustee’s title and estate is separated from the vested
beneficial interest of the beneficiary.”).
Following our review of the record before us, including
especially our reading of the voting trust agreement, we conclude
that the voting trust meets each of the requirements necessary to
establish a trust for Federal income tax purposes. The District
Court ordered the creation of the voting trust upon the joint
motion of Textron and the FTC so that Textron could retain
beneficial ownership of Avdel while the FTC reviewed the
potential restraint of trade issues. Textron settled the Avdel
shares into the voting trust, and the trustee assumed ownership
of the shares in accordance with the obligations set forth in the
voting trust agreement. Textron was the voting trust’s sole
beneficiary; i.e., Textron was the only contributor of property
to the voting trust, and Textron was the only holder of a
beneficial interest in the trust property under the voting trust
agreement.
Respondent asserts that the voting trust is a grantor trust
that in each of the subject years realized subpart F income
attributable to its ownership of the Avdel shares. Respondent
also asserts that Textron is the grantor of the trust and, as
such, must recognize the trust’s subpart F income under subpart
E. We agree with both of these assertions. First, we find that
Avdel was a CFC and that the voting trust owned directly (and had
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