-330-
Issue V. Whether Kanter Is Taxable on Income Attributed to
the Bea Ritch Trusts for 1986 and 1987 (STJ report at
111-121)133
FINDINGS OF FACT
A. The Bea Ritch Trusts
As noted earlier, the Bea Ritch Trusts consist of 25
separate trusts, established on or about January 1, 1969, for the
benefit of Kanter, Kanter’s family, and other relatives of
Kanter.134 Initially, Kanter was a beneficiary of each of the 25
trusts. Since about 1969, Weisgal has been the trustee for each
of the 25 trusts.
In the common trust instrument, dated January 1, 1969, that
established each of the 25 trusts, Bea Ritch (Kanter’s mother)
was identified as the trusts’ settlor. She purportedly funded
each trust with a corpus of $100. There is no evidence Bea Ritch
actually contributed $100 each to the trusts or that she made any
subsequent contributions to the trusts. The common trust
instrument granted the trustee (who has always been Weisgal) an
extremely broad sprinkle power. In addition, Kanter was given a
133 As discussed below, although this issue concerns
Kanter’s tax liability for 1986 and 1987, Kanter did not appeal
the decision entered in his case at docket No. 24002-91 on Sept.
24, 2001, concerning his liability for the taxable year 1987, and
that decision is now final. See secs. 7481(a)(1), 7483. Because
the operative facts are largely the same for both 1986 and 1987,
we nevertheless shall speak to both years.
134 See app. 17 to this report.
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