Legal Document

335 U.S. 632 69 Supreme Court Reporter 337 93 L.Ed. 288 SPIEGEL'S ESTATE et al., Petitioners,v.COMMISSIONER OF INTERNAL REVENUE. COMMISSIONER REVENUE, Petitioner, versus CHURCH'S al. Nos. 3 and 5. of the United States January 17, 1949 Decided Jan. 1949. On Writ Certiorari to Appeals for Seventh Circuit. Third Concurring dissenting opinions. For majority opinions, see 701, 301, 632, 322. Mr. Arnold Raum, Washington, D.C., petitioner. William W. Owens, New York City, respondent. Justice BLACK delivered opinion Court. 1 This case raises questions concerning interpretation that part § 811(c) Internal Revenue Code, 26 Code Annotated KF65 U5 811(c), which estate tax purposes requires including in a decedent's gross value all property decedent had transferred by trust or otherwise before his death was 'intended take effect possession enjoyment at after * *.' Estate Spiegel Commissioner, involves also depend upon provision 811(c). After argument consideration cases October 1947 Term, an order entered restoring them docket requesting counsel reargument particularly discuss certain broader scope than those originally presented argued. Journal Court, 297—298, June 21, 1948. Those additional have now been fully treated briefs oral arguments. 2 executed 1924 Francois Church, then twenty-one years age, unmarried childless. He accordance with state law. Church two brothers were named co-trustees. Certain corporate stocks grant power trustees hold sell reinvest proceeds. reserved no alter, amend, revoke, but required pay him income life. reservation life is decisive factor here. At Church's (which occurred 1939) terminate agreement contained some directions distribution assets when he died. These as final did not, however, provide possible contingencies. If died without children any sisters, their children, surviving him, instrument made disposal assets. Had this unlikely possibility come pass (at there living, five brothers, one sister, ten children) would controlled It has government's contention under law such beneficiaries corpus reverted estate. reverter plus retention settlor life, Government argued, inclusion our holding Helvering Hallock, 309 106, 60 444, 84 604, 125 American Law Reports 1368. 4 The Hallock held where person while living makes transfer provides reversion donor contingency terminable death, should be included 'possession enjoyment' Code.1 In case, Tax relying its former holdings2 declared 'The mere operation failure trust, due remaindermen prior decedent, not within case.' it unnecessary decide disputed question whether operated create reversionary interest. Circuit, judge dissenting, affirmed on ground could identify clear-cut mistake Court's decision. 161 Federal Reporter, 2nd Series 11. Circuit found Illinois reversed Commissioner Spiegel's Estate, 159 257. Other courts appeal same.3 Because conflict we granted certiorari case. 5 Counsel estates strongly contended both arguments these neither nor circumstances presented. They argue further even if states exist, unjustifiable extension rule respondent pointed out extreme improbability outlived children. argues happening so remote, money interest infinitesimal, entirely unreasonable because contingency. But Fidelity-Philadelphia Trust company Rothensies, 324 108, 112, 65 508, 510, 89 783, 227. 6 Arguments brought prominently into focus sharp divisions among courts, judges legal commentators, intended decision, are incompatible May Heiner, 281 238, 50 286, 74 826, 67 1244, latter can longer accepted controlling 811(c).4 Heiner need settlor's estate, though retained himself from corpus. We concluded confusion doubt set rest sound judicial administration. Furthermore, controlling, properly regard much discussed question, since himself. reasons follow, conclude Hall ck holdings opinions irreconcilable. Since adhere provisions correct. 7 appearing seems originated Pennsylvania inheritance 1826.5 As early 1884 carried right grantor profits until grantor's death: 'One certainly cannot considered, actual who incomes arising accruing therefrom.' Reish, Adm'r Commonwealth, 106 Pa. 521, 526. That court Possession clause involve technical title, imposed unless parted during title enjoyment. test 'intended' subjective one, what parties do, transaction actually effected 8 Most Pennsylvania-originated statutes, appears complete unanimity, they up day, despite substantially agreed interpretation.6 Congress used legislation 1862, 1864, 1898. ,12 Statutes-at-Large 432, 485; 13 223, 285; 30 448, 464. referring 1898 Act, said 'the liability taxation depend, vesting, sense, gift, thereof.' Vanderbilt V. Eidman, 196 480, 493, 25 331, 334, 49 563. And 1916 statute incorporated frustrate evasions, 39 756, 780, judgment sustaining constitutionality said: 'It true ingenious mind may devise other means avoiding tax, commonly estate.' Matter Keeney's 194 N.Y. 281, 287, 87 Northeastern KF135 N59 428, 429; Keeney Comptroller State York, 222 525, 32 105, 56 299, 38 L.R.A.,N.S., 1139. Bullard, 303 297, 302, 58 565, 567, 82 852, foregoing quotation repeated seeming approval. 9 From first H iner, supra, (281 287) decided 1930, transfers designed distribute always Treasury Department death'. regulations provided millions dollars collected taxpayers bases. See e.g., Decision 2910, 21 Treas.Dec. 771 (1919); Cong.Rec. 7078, 7198 7199 (March 3, 1931). principle well settled 1928, favor one-sentence per curiam opinion. Cir., 1017. Nevertheless, March 2, 1931, followed three thus upsetting century-old historic meaning long standing clause. Burnet Northern co., 283 782, 51 342, 75 1412; Morsman Burnet, 343, McCormick 784, 1413. 10 next day rendered, Acting Secretary Ogden Mills wrote letter Speaker House explaining before. disastrous effects urged 'in prevent evasion,' immediately 'correct situation' about cases. 7198, (1931). expressed fear action suffer 'a loss excess one-third revenue derived federal anticipated refunds $25,000,000.' Secretary's surprise decisions apprehensions evasion consequences floor Senate. supra. Senator Smoot, Chairman Senate Finance Committee, 'came almost like bombshell, nobody ever decision.' 7078. Both houses unanimously passed President signed requested resolution same day.7 11 February 28, 1938, passage later 1932 Act apply trusts created passage. Hassett Welch (Helvering Marshall), 303, 559, 858. Accordingly, court's involvement intricacies law, must done virtue section stood language added joint resolution. 12 Crucial finding irrevocably executed; reason life8—one chief bundle-of-ownership interests—was bring category never limited section.9 Thus formal rather substance sole taxability viewpoint significant continued death; important consequence postponement death. permit relieve conveying whom selected, manage deliver chosen Preparation papers defeat became easy chore skilled 'various niceties art conveyancing.' Klein States, 231, 234, 398, 399, 996. simple method could, clause, retain enjoy fruits direct free taxes others less technique pay. Regardless facts preserving beneficial use one's providing delivery 'not testamentary character.' page 243, 1244. Cf. pages 535, 536, 107. 14 One year There deed wife her she survived 'by conveyance take, have, lands fee simple,' 'remain vested in' die first. general made, vesting grantee 'depended condition precedent happen grantee.' Thus, land husband, 'posse sion section. cite Heiner. 15 1935, St. Louis Union Co., 296 39, 74, 80 29, 100 1239, Becker 48, 78, 35. each again, delved subtle concepts properties there, unlike situation transfer, grantor. bare enough render inapplicable. expressly overruled Hallock. 16 1940. Three separate considered cases, grantors outlive beneficiaries. 1917, 1919, 1925. again asked limit emphasis title. By concentration elusive invited lose sight plain fact postponed. declined effectiveness attempting define nature inter vivos transfer. called attention snares inevitably await attempt restrict 'niceties conveyancing' 117, 450, 'taxes merely interests deemed according refined technicalities property. too akin dispositions subjected excise,' gifts 'resorted to, substitute will, making operative death.' 114, 449. 17 dissent directly unequivocally rejected only support possibly suffice conclusion require succeeded passing emphasized removal declaring 'deals technically theretofore created. taxable event vivos. measure time brings enjoyment.' 110, 111, 447. 18 Moreover, 449, stands plainly 'In determining becomes look substance, form. However label device (if) gift rendered incomplete donor's death' applies. 19 How call 'complete' except invoking fiction? owner Probably greatest continuing get income. transferred, somebody still owned stock remained ffective date, view trustees. gave nothing, either partially completely. spend teaching quite contrast trustee necessarily crucial purposes. Looking form, depart inescapable most valuable stocks—the far more attach 'string' remotely property, sufficient make subject tax. risk attaching unbreakable cable attribute stocks, simply income, when, attributes 'passed' Even 'obliterated,' language, beyond simultaneously income; did. 'passed.' time, become 'complete.' 20 repudiation reasoning advanced (St. Becker) overruled, rejection rationale relied. thereby returned avoided bona fide settlor, absolutely, unequivocally, irrevocably, reservations, parts left present possess thereafter. words immediate out, unaffected lives dies. Shukert Allen, 273 545, 547, 47 461, 71 764, 855; Smith Shaughnessy, 318 176, 63 Lawyers Edition 690. Goldstone 325 687, 690, 691, 1323, 1324, 1325, 1871, 1330. reference connection ruling: '* sweeps ultimate suspense moment Testamentary escape force hiding behind devices forms conveyancers.' Field's 113, 511, 786, 230. continue leave Congress. Little effort defend truly reflects congressional purpose, do think purpose persuasive argument, all, reserving remainders over grantors' eaths satisfactory effective substitutes wills. fact, 'provision lawful issue' might 'leave life.' paper, labeled substantial postpone relatives instruments fall clearly class wills it. 22 error merits alleged stability certainty, stare decisis deference just expectations relied doctrine. Special stress laid 1938 doctrine argued way ratified decision Marshall soundness interpretation. find merit contentions. 23 What appear answer answers recent regulations, compulsion history struggle shown opinion, served spotlight abiding conviction statutory rejected. field, variant followed, believe 1931 felt secure belief protection one. concerned, 1924, period 1939. 24 repudiated repeatedly challenged Treasury. overstatement say scant respect. 'displaced' construction 811(c); overruling 'Congressionally discarded doctrine'; thought 'had already attitude underlying' cases; finally demolished holding. 1925 took place 1940, amendments applied 1931. Certainly, sanctuary tranquil troubles challenges. Nor does together, undisturbed. impossible accept ratify hit 'bombshell.'10 ask reexamine overrule government brief distinguishable Welch. pointedly insisted position reexamination 1931.' Government's reenactment application thereafter created, new amendment applicable past agreements. single question. implications recognize reaffirm 1920, beneficiary, revert settlor. very type involving deciding reliance retroactive 27 treat having reaffirmed pre-1931 1413, chiefly McCormick, 43 277. Our contrary, taxed interpreting th correct restrictive prospective, give vigor doctrine.11 28 here misplaced. agreement, therefore 29 Reversed. JACKSON concurs result. 31 REED FRANKFURTER, 337. REED, concurring Number 5, Church. 33 influence subsequent area issues decided, & N Dec. Immigration Nationality Decisions advisable my whatever light throw. agree directed rests solely Illinois. disagree today, put retains reverter. am opposed written Burton intent acts touchstone determine 34 So overruled. Joint Resolution therefore, determinative reaching Welch, 858, retroactive. Consequently, 35 also, think, Reinecke 278 339, 123, 73 410, 66 397, mention incidental side, or, hand, rul 1368, numerous follow teaching, reverters documents. Legislation indicates promote desirable benefits. course legislative construction, donors arrangements upset summarily stronger doing interpret does. Judicial efforts mold policy isolated national system difficult develop, administer observe. thirty legislated problem interpreted enactments me reasonably fair written, worked out. Relying desirability changes seem Congress, authority rests. 36 (1) A contemplation Income 1916.1 will noted phrase relating [settlor's] changed. construed first, something 'possession, control 348, 126, 397. 'Of every manifestly statute.' 855. When, execution 'held sense disposition,' 43, 76, 1239; City Bank Farmers 85, 88, 70, 72, 62; 1413; appointment change is, 345, 124, 397; Porter 436, 53 451, 77 880. 37 996, above conception survive simple. 'brought larger being transmission dead living,' upholding four members mean 'operating calls operation.' Stone, 46, 77, 1239. positions, cause another descent select through formerly reach death,' concept, than, addition, barred instrument, dissenter's 1368.2 us stated Eisenstein, Taxes Higher Learning Rev. 395. gained strength repudidated inconsistent judgments applying principles statement. 227; heretofore meant standpoint transferor's least, transferor perfects transferee cuts off reacquired purchase, factors enter. Before insufficient preserve nothing When many shades ambiguities given definition litigation, avoided.3 source Prior involved specifically remainders, contingent powers appointment. entire taxed. completed fail result corpus.4 circumstances, §§ 810 regaining devolution issue raised springing shall effect. All settlors issue. depending repossess estates.5 40 To lay heart problem, helpful aside phases intention meaning, reasons. 41 Atlantic dealing whole value, total purposes.6 show this. note 1, Gifts remains donor. Therefore B B's C, heirs, devisees assigns 347, 125, 19317 remainder taken future settlor.8 42 baron subsection Neither discussion house suggested aimed interests, determinations untouched addition designate intention, adopted.9 state, handed down, cover reservations designation legislatively changed adding Resolution. accord refers reserve meant. imply, read it, doctrine, supported passes difference wrought concept enlargement living. Assuming Resolution, definitely manifested subsequently thereto. matter thoroughly and, unanswerably add argument. Attention, statements Committee Ways Means Resolution.10 Hawley, answering said, hereafter evade tax.' Garner stated: 44 afternoon meeting reported passed. afraid hope Seventy second able bill retroactive.' 45 reiterated, 'I strong hopes same. vivos, beer 46 C. corollary B, clear bringing cestui que postponed D. closely will. obliterated modify devolution. Only chances wholly control, disposition hands. Further, handle benefit pleased Of course, similar objects bounty takers father annually sums earned, economic forward certainty annual trust. Without benficiaries' wish needs illustration father's different thing irrevocable principal child. 48 Returning between progeny arises terms material Granting interpretations sections logically determined remote possibilities interfere beneficiaries' lifetime donor, balance experience precedent, tips scale judgment. important, decisive, justified pushing logical extreme, outgrowth rule. know broad accomplish effectually. 'Intended effect,' view, abide variation employment incompleted gift. creates equal difficulties. unmindful effort, joined, harmonizing difficulties engendered lies against beneficiary. uniformity attempted more. leaves particular dependent determination divested res trust11 competent misunderstanding intention. (2) leads res, Illinois, heirs legatees last descendant descendants, due. extremely young son aged mother principal. 257, 259, 'If none possibility, failed, naked resulting settlor.' squarely point, absence reasonable circuit embraces Stuart, 317 154, 164, 140, 146, 154; MacGregor Mutual Life Assurance 315 280, 62 607, 86 Lawyer’s 2d KF101.8 U54 864. appeals accords generally accepted. Restatement, Trusts 411; Scott, Bogert Trustees 468; Harris Savings Morse, 238 Ill.App. 232; Lill Brant, 366, 376.12 52 taxpayer relies wherein remainders. overturn firmly express fails lack law.13 vest desirable. u der be. return go reading instant manifest intend dispose respective shares predecease grandchildren. classes evidenced child child's share His trusteeship negative exclude 54 No point. 55 (3) Finally, dealt with. resident Jersey. Two times residents accounts kept. me, assume produces include state. This, followed. 11, Dobson (Dobson Commissioner), 320 489, 64 239, 88 248, consider stands, trusts, includable vacate remand 57 affirm Commissioner; FRANKFURTER (dissenting.) fitting together portions concurrence disagreement comprehensive brother BURTON, indicate, substantially, views piecing Joseph's coat. Therefore, repetition others, self-contained statement basic clarity. Particularly disharmony supports common result—a Congre invited. 59 I. settlement himself, form disguised estate-tax basis supplemented 230, U. S. however incurred discovery gossamer thread enjoyment, value. Nevertheless really Such unanticipated hardship taxpayers; unrealistic Code. duty whereas avoidance compelled disregard vital differences indenture placed. 61 1. securities co-trustees, paid equally lifetime. issue, any, corpus, accumulated divided 'equally children; died, leaving surviving, deceased mine receive share' parent entitled. remaining established old, 25, 15, 13. twenty Upon assumption predeceased 'surviving children,' mathematically worth $4,000.1 2. series, several giving donee him. dominion t e instruments. Until former's was, were, competing conveyancing immaterial net revest survives donee. Except nonexistent practical affairs Spiegel. grandchildren real world back windfall. contingencies benefit. definitively closed fixed quantum share. Contrary suggestion case—a opinion—the theory carries seed own destruction genrating 259. mode swept 1920 conceivable presumably turn outright arrangement offspring care mortality offspring. Provisions precisely kind ancestor children's settles successive generations reserves Nothing feudal notions seisin reserved. pertinent lead imposition away insistence 'unwitty diversities derive[d] medieval necessity continuous seisin. peculiarly irrelevant measures largely towards intangible wealth.' 118, metaphysical remoteness depended highly existence evaporated tenable sort designated persist Miller, B.T.A. 138; Griswold, Cases Materials Taxation 145 (1940). 3. invoked bear resemblance justification ruling made. daughters, eversion daughters Brief Respondent, Page 8, supra; 693, n. 1326, birth cut occur Since, controversy deduction allowed mother's daughters' unborn children.2 Likewise Field conceded interest—the reduce cancel tenants tenants. concerned assessed—whether tenancies deducted insurance payable destroys discussed. least favorable instrument—whereby parents settlor—the regain tenuous. Reading customary hostile spirit, indefeasible. reacquisition vanishes.3 sure, generality indifference regarding uncertainty 'reversionary interest.' seen itself purposely context substantial. talk indicating nice calculations chance significance onetary contrariwise 68 4. binds subjecting visible mind's eye. depends recognition best dubious exists My BURTON'S disproof lightly dismissed. best, guess enforce displaced tomorrow authoritative guess. hang thread, ought sure there. inform this; adjudication appropriate procedure Declaratory Judgment available.4 justify theory, rational disposing allow available point correctness doubtful. Thompson Magnolia Petroleum 478, 483, 484, 628, 630, 631, 876; Spector Motor Service, Inc., McLaughlin, 323 101, 152, 101. conclusively fix interests. Blair 300 9-14, 330, 331-334, 81 465; Freuler Helvering, 291 35, 308, 78 634. II. extends proper statute.5 concerns toward series long-standing unanimous More that, respect owed 70 short eighteen ago 1918 earliest opportunity, minor variations presenting reconsideration specially fiscal matters, adhered decisions, cast aside, shared invidiousness alert recognizing public resourceful protecting brave men Agamemnon. viewed contemporaneous wisest assured greater permanence. fairness, joining laying adhering ruling, Chief Hughes, Holmes, Brandeis, Stone denied us. ago. ordered formulated shed vitality limbo. universal, inexorable command.' J., Washington Dawson 264 219, 309, 646. hand. heavily 'We embodies social policy. represents element continuity rooted psychologic satisfy expectations.' 119, reliances firmness allegiance principle, utilization ad hoc argument.6 cramps Government; constitutional proved parochial instead spacious Constitution self-correction waiting leadenfooted process amendment. exercise construe enacted ample quickly completely misconstruction. 72 powe promptly dissatisfied provision, reaffirming appealed relief relief. today's decisis. extent feel bound innovate perennial pull aspects past. obligated, declare. Inevitable arise manner ordinary English speech, disregarding limits function profess deeply emphatic reaffirmation sought expert failed persuading seek Congress? Did rewrite 302(c) 1926, sterilize Heiner? Certainly not. Not word altered proposed qualifying whereby settlements qualification operative, Such, history, did, qualify constrained mandate recounted voice. bears repetition. adopted, prospective Its sponsors declared: 'Entirely apart expected result, persons proceed execute varieties enabled importance corrected obvious opportunity removed. proposed.' 76 good retroactive: Seventy-Second 7199. charge submitted Report, explanation Resolution's meaning. Representative Schafer Wisconsin explained object, preventing acceptance Cong.Rev. 7198. 79 reenacted 72d 803(a) 1932, n pre-May slightly phrasing. 279. 1924. filed data demand contrary result.7 quoted majority, appreciated tax-avoidance retroactively indicated 1931.8 especially entirety, phrased way: petitioners 1926 amended includes which, adoption amendments, ransferred 304, 560, authoritative, pointless operate retroactively. Learned Hand, Proctor, 140 87, 89, 155 845. attack Having rebuffed resorted nullify effect, claim had, prospectively, retrospectively. unanimity confirms inevitability d considerations led likewise litigation propelled reargument. nature, reenforced decade's administration 83 identical Although retroactive, done. 7199, ante remind unfinished business, law.9 decade, impressive body compelling story summarized. massive Appendix 355. face above, precise actions announced wording terms. Note, Harv.L.Rev. 1277, 1285. An bombshell' alter 358. Due precludes ignoring explicit 'yield results consonant fairness reason.' Anderson Wilson, 289 20, 27, 417, 420, 1004; Cardozo, Nature Process (1921). induce vote now, later, body's concurrence. 85 comparable flouted charged seeking conflicting taking steps meet decisions. case.10 acquire content professional controversy, full debate, refused undo fit partially. Griffiths, 371, 636, 843; South Buffalo R. 333 771, 773-785, 868, 869-875; cf. Apex Hosiery Leader, 310 469, 487-489, 982, 988, 989, 1311, 128 1044. case.11 explicitly implication, declare spoke discarded'—a reference, incidentally, recognized distinction Klein12 Trust13 cases—we one14 Hall's 153 172; 845; 11; Brown, 134 372. supposed, answered Judge Hand 89: explicitly, inference anything siad, supra forget 120 S., 452 S.Ct., Frankfurter, doctrine; unwarranted infer 'doctrine,' purpose. wrongly decided. Perhaps decided; perhaps evidence was; so, indicate so. Roberts, (309 127, 455 *) apparently consistently, fall, 'Helvering situation. estate—the went him; her. intent, used. determined; how contribute result; altogether independent lift power, ours exercise. right, 1368 sub silentio. retroactively; necessary same, law.' reverse APPENDIX 90 During Past Decade Which Legislative History Was Decisive Construction Particular Statutory Provision 91 Durkee Famous Foods, 306 68, 456, 492; Towery, 324, 522, 678; Kessler Strecher, 307 22, 694, 1082; Maher, 148, 768, 1162; 1936 Model Ford, 861, 1249; Sanford's 308 51, 20; Palmer Massachusetts, 79, 34, 93; Valvoline Oil 141, 160, 151; Haggar 389, 337, 340; Federation Labor National Relations Board, 401, 300, 347; Kalb Feuerstein, 433, 370; Morgan 626, 424, 585, 1035; Chicago Coal Dock Bassett, 251, 544, 732; Amalgamated Utility Workers Consolidated Edison 261, 738; Germantown 566, 770; Sheldon Metro-Goldwyn Pictures Corp., 390, 681, 825; County San Francisco, 16, 749, 1050; Sunshine Anthracite Adkins, 381, 907, 1263; Trucking Ass'n, 534, 1059, 1345; Dickerson, 554, 1034, 1356; Northwest Steel Rolling Mills, 311 109, 29; Neuberger 83, 97, 58; Milk Wagon Drivers' Union, Local 753 Lake Valley Farm Products, 91, 122, 63; Janney, 189, 241, 131 980; Taft 195, 244, 122; Hines Davidowitz, 312 52, 581; Gilliland, 86, 518, 598; Webster Atlas Boston, 156, 542, 642; Cooper 600, 742, 1071; Enright's 777, 1093; Maguire 313 S.C . 789, 1149; Campbell, 798, 1159; Shamrock Gas Corporation Sheets, 100, 1214; Phelps Dodge 177, 845, 1271, 133 1217; Flaccus Oak Leather 247, 878, 1310; Benitez Sampayo Nova Scotia, 270, 953, 1324; Baltimore Ohio Kepner, 314 44, 6, 136 1222; Parker Boat Sales 221, 184; Textile Securities 326, 272, 249; Gray Powell, 402, 301; District Columbia Murphy, 441, 329; Natural Central Public 498, 384, 371; Duncan Thompson, 422, 575; Cudahy Packing Holland, 357, 788, 651, 895; 807 International Brotherhood Teamsters, 642, Stonite Product Melvin Lloyd 561, 1026; Board Electric Vacuum Cleaner 685, 846, 1120; Miles 698, 827, 1129, 146 1104; Use Noland Irwin, 316 23, 899, 1241; Mishawaka Rubber Woolen Manufacturing Kresge 203, 1022, 1381; Kirschbaum Walling, 517, 1116, 1638; Cement Investors, 527, 1125, 1649; Marine Harbor Properties, Manufacturers' 93, 64; Braverman 49, 99, 23; Riggs Del Drago, 95, 142 1131; Ex parte Kumezo Kawato, 69, 115, Hardinsburg 135, 128, 140; Pfister 144, 133, 146; Wayne Pump 200, 191, 341, 307, 315; Walling Jacksonville Paper 564, 332, 460; Harrison 476, 361, 407; ex rel. Marcus Hess, 537, 379, 443; Monia, 409, 376; Ziffrin, 73, 465, 621; Hoffman, 477, 645, 144 719; Overstreet North Shore 494, 656; Robinette 184, 540, 700; 690; Sabine Transp. 306, 569, 773; Security Quaker Oats 218, 589, 724, 158 832; Swift 442, 684, 889; Ecker Western Pac. 692, 892; Fred Fisher Music M. Witmark Sons, 643, 773, 1055; Jersey Power Light Commission, 319 61, 1258; Broadcasting 190, 997, 1344; Boone Lightner, 1223, 1587; Schneiderman 1333, 1796; Hirabayashi 81, 1375, 1774; Roberts 264, 41; Dotterweich, 277, 134, 48; Crescent Express Lines U ited 167, 127; Colgate-Palmolive-Peet 227, 143; Laudani, 543, 315, 149 Myers, 312; McLean 321 67, 370, 544; Railroad Trainmen, Enterprise Lodge, Toledo, Pacific P2 R., 50, 413, 150 810; KF105 F3 Goodrich 471, 602; Davies Warehouse Bowles, 474, 635; Hecht 321, 587, 754; Cornell Steamboat 634, 978; Hearst Publication, 322 851, 1170; Carolene 18, 1371; Davis, 157, 107; Rosenwasser, 360, 295, Telegraph Lenroot, 490, 335, 414; Hartford-Empire 386, 373, 322; Muscatine, 138, 801; Gemsco, 605, 921; Canadian Aviator 215, 639, 901; Connecticut 515, 1150; Haw. Hawai‘i KFH45 A2 Phillips, 807, 1095, 157 Brooklyn Sav. O'Neil, 697, 895, 1296; Trade Commission E. Staley Mfg. 746, 971, 1338; Jewell Ridge 6167, Mine America, 161, 1063, 1534; Elgin, Burley, 711, 1282, 1886; Interstate Commerce Parker, 326 60, 1490, 2051; Markham Cabell, 404, 193, 165; John Kelley 278; Roland Electrical 657, 383; Mabee White Plains Pub. 327 178, 607; Duggan Sansberry, 499, 809; Carbone, 633, 734, 904; Williams 778, 962; 328 932, 1165; Hust Moore-McCormack, 707, 1218, Sheridan, 329 359; Oklahoma Civil Service 330 794; 258, 677, 884; Carpenters Joiners America 395, 775, 973; Stevedores Incorporated Porello, 446, 847, 1011; Mechling, 894, 1102; Ogilvie Hardware 709, 1192; McCullough Kammerer 331 96, 1165, 1365; Ayrshire Collieries 132, 1168, 1391; Austrian, 1443, 1718; Jones Liberty Glass 332 524, 229; Fong Haw Tan Phelan, 374; Hilton Sullivan, 334 323, 1020; Lines, 573, 1169; Zazove, 602, 1284; Industrial Organizations, 1349; Shapiro 375; Ahrens Clark, 188, 1443. 92 Opinions Resting Rule Reenactment Statute Carries Gloss Placed Storage Battery Shimadzu, 14, 613, 616, 675, Rasquin Humphreys, 54, 77; 1044; Brooks Dewar, 354, 979, 1399; Halliburton Well Cementing 1056, 1312; Munter, 210, 1175, 1441; Francis Southern 445, 611; 868; Communications Comm. System California, Black Washingtonian Publishing Drew Pearson, 30, 42, 403, 470; Girouard 830, 1084. 94 dissenting. 95 case1 301. speak themselves praesenti. 96 factual likewise, affirmative absolute praesenti avowedly protect family reverter, features consideration. 97 First. arose came Jersey, announcement Second York. taxpayer, turn, elucidate 98 While affirmance s law.2 disregarded de minimis non curat lex. 99 Second. below reversed, facing grounds affirmance. i foundation reversal 1516, 1517. after, before, demonstrates, character described. 1924—and December 1939—there little, rights Between 1939, down April 1930; 1412, companion 1931; 1938. thereunder entry enact reflected doubt. seven Justices participated refrained expressing reviewed carefully administrative statute. follows (303 314, 858): 101 rules teach presumed, expression prospectively; taxing statute, resolved dates respectively. 102 'Holding statutes deprive respondents violation Fifth Amendment.' 103 reason, suspect purposes.3 104 way. However, status Thereafter, ascribed degree forth original language. future. conformed practices acceded Marshall, lower tax.4 Today, practice conformity decisis, limitations 119—122, 451 453, weighs now. exist rejecting construction. pre-March 1931-trusts retroactively, 1948, respectively, countless doubtless benefited benefits Government, reversal, relieve, who, demonstrated Department, disposed special emphasize unique unfairness enforcing 105 reversing repudiates finality 1930 legislation. holds resort final, judicata. Judicial, Executive branches extraordinary circumstances. relative relation Passage soon eliminate date yet whose forced injustices reversal. Value them. Faith justifiable self-restraint using self-reversal. essential inherent jurisdiction, suggests scrutinized utmost care. suggest support, require, approved Likewise, intervening us.5 reasons, appeared 9, 169, 279, KF62 Cass, KF6280 U55 562; Kellogg, 119 affirming 916; Downe, 967; Houghton, 871; Goodyear, 885; Delany, 781. Bayne's 475, 167 436; Thomas Graham, 561; Beach Busey, 156 496. 1196, Bradley, sub. nom. F.Supp. 733, Ct.Cl. 311. Montgomery, Taxes—Estates, Gifts, 461—462, 480 482 (1946) Paul, Gift Taxation, 1946 Supp. 7.15, 7.23. note, Inter Vivos Transfers Tax, Yale L.J. 1118 (1940); L.Rev. 395 (1948). Origin Phrase, Take Effect Enjoyment Death' (§ Code), 176 (1946). 878—892; 1250 1254; 1246—1254. Rottschaefer, Taking Grantor's Death, Iowa 514 (1941); Oliver, Property Rationalism Pragmatism, Tex.L.Rev. 704—709 (1942). '(c) therein otherwise, ending of, from, therefrom italics additions 1926. Barney lifetime, wife, Pauline May, grantor, distributed record disclose Mrs. importance. revoke includable. alone accumulation beneficiaries, 855, Allen 125. bulletin Department's inapplicable transfers. 4314, X—1, Cum. Bull. 450—451 obviously constitutionally previously Nichols Coolidge, 274 531, 710, 1184, 1081, line apprehension underlying statement, dissent, 'retroactive it.' Recent valid Hanover Kelly, 94, 98, 947, 1282; Fernandez Wiener, 340, 355, 186, 116. appendix citing 'Decisions Provision.' Many cited establish known disputes. here, author 'under canons impliedly experience, internal legislation.' 120, 121, Note 7, 452, 'settled principle' based holding, strikingly forceful dissent. spokesman 'we walk quicksand try corrective principle.' 202(b) 1916, follows: 'That personal, tangible intangible, wherever situated: '(b) sale money's worth. *' With small 402(c) Acts 1921, 1057, 1097; 278, 253, 304; 70. Res. 529, assumed reads situated, situated outside States—— 'To ascertainable end conjunction wity person, therefrom; adequate italicized 562, underscored paragraph 1934, 680, 754. change. Whether 'trnasfer vivos,' 447, 546, 509, precise, immaterial. Int.Rev. 810, 47, enactment aid integral scheme Milliken 327, Donnan, 285 312, 358, 362, 364, 772. excise privilege Int. 827(b), 827(b). checking avoidance. 809. 'A vindication exaction donor.' 352, 116; 363, Safe Deposit Stead, 232 58, 209, 211, 504. 1368; L.R. 230; defines taxed, controls 161-163, 145, 10, 465. act jurisdictions deal behalf Doner Phoenix Stock Land Kansas 381 Ill. Eastern Kinney Lindgren, 373 415, 471; Tribune 248 242, 757; instrument. Crow Crow, 348 180 877; Bear Millikin 336 168 349, 173; Wanner, 860. discretion management equity court, exercised Macomb, 293 127 682; Jones, 124 254, 751. authority. 162-166, 144-146, 170; 187. refer items exemption covered 812, 812 811. 1516. 1244; Burn Why property' know. taxation. probably why turned 7198-99. 162, 154: 'When fixes revesting 'necessary implication,' Grantees deeds, alike, essentially local selected event, receipt distributions funds normally levied occur. placed Once obtained called, taxability.' Annotations Restatement Trusts, 411, says 'states law,' Anno. comment (b). uncertainties surrounding burden proof assessment deficiency, Appeals. Leonard, 80, 1087; Fitch, 149, 427, 665; 172, 14.47, Supp.; Mertens, 285-86. Chater Carter, 572, 859, 862, 1462, following Lottie Lee dividends 1st her'. expiration three-year heir 'to strain words, sometimes avoid intestacy construed.' redeliver came. grandchild settlor-decedent 'limited clearer events creation removed existed assumes sisters requirement anyone take. Unless going import tortious conveyances modern arrangements, reject causing Smith-Hurd, Ill.Stat.Ann., Title 181.1. Added 1945. portion continuously books enacted. 202(b), 777; 1918, 402(c), 302(c), 1516; 803(a), Screws 1031, 1040, 1495, 162 'But [now 242] Classic [United Classic, 1368] enforcement field. adopted mature only. Mahnich 455, sport preceded product hasty inadvertence. preceded. fashion governing throughout wisely flexible frequent re-examination. color law' Hence undesirable consequences, instability revise exigencies coming us.' Pages seq., resolving statutory, constitutional, 245, 288, 785, qualify. House, asked, 'Was statute?' sponsor legislation, Texas, replied, itself, constitutional. Indeed diffcult affected offended progress Fourteenth Amendment. L.R.A., N.S., See, e. g., Hearings Revision, Cong., Sess. 42-43; 33, 51; 5787; 1936, 74th 624; Revision Laws, 75th 3d 108; 692-93; Means, 77th 74-75; 1941, 37; Data Proposed Bill 1942 Submitted Staff 363-65 (1942), 91-92, 94; Revised 1943, 78th 7; 46; Taxes, Proposal Integration Correlation Study prepared Advisory Office Counsel, cooperation Division Research Bureau (1948); Letter Under Chairman, 26, (mimeographed copy furnished Treasury). text insofar relevant 'Nor want specific Congressional repudiations serve implied instruction reconsider, dissonance enveloping silence debar re-examining doctrines. explain non-action sheds venture speculative unrealities. decision; indication committee pigeon-hole. number moved stay inaction hardly practice, acquiescence, tantamount estoppel barring re-examination distinctions drawn. Various parliamentary tactics strategy Footnote 'has relevance problem' silent problems imply cases'; 'since re-enacted 302(c)'; long, uniform re-enactments ambiguous implying construction.' footnote plausibly table shows inapposite observations Treasury's Bearing compared response v Relevant Age questioned Five Eighteen abandoned Weight (a) division 5-4 Unanimous (b) Times Evidence None exact acquiescence Change Apparent Difficulty getting adherence votes relinquish Frank, 174, 175. bar hardships alleviated regulation relieving reliance. confession unfair. Indenture 17th L. Borough Brooklyn, (hereinafter 'Settlor'), party part, Dwight city Charles T. Rochelle, 'Trustees'), part. 'Whereas desirous hereinafter forth, 'Now, sum Dollar hand paid, whereof hereby acknowledged, herein declared, hereof, sold, assigned, sell, assign, unto Trustees, successors, securities, wit: thousand (1000) corporation organized laws Maine, moneys investments them, described proceeds thereof converted nevertheless hold, manage, invest conferred trustees, collect paying charges nd expenses chargeable Settlor, term natural Settlor cease amount increase stirpes entitled sister authorized empowered: '(1) continuance investment received liable account loss; '(2) private price prices lots parcels sales consent Settlor; 'Likewise reinvested delay default approval York; '(3) compromise claims security forming thereof; '(4) exchange reorganization Company companies issuing belonging trust; '(5) stock, proxy, consolidating merging corporations corporations, dissolution liquidation creating authorization indebtedness, mortgages liens organization deposit corporation. '(6) apportion uncontrolled deem proper, losses crease decrease interest, dividends, cash, bonds, debentures, similarly realization property; '(7) employ attorneys compensation services expense resign vacancy filled successor writing Settlor. witness hereto hereunto hands seals written. 'Francois 'E. 'Charles Trustees.' cites Fulton 218 581, 113 558, L.R.A.1918E 1070; Bowers' 195 App.Div. 548, 186 Supplement 912, 231 132 910; analogous situations dispositions, Elting's Will, 268 N.Y.S.2d 892, 294 941, 123; McCombs' 261 287 557, 226. advice attorney assuming relationship, consulatations couns evidently mind, recently remanding ascertain unfair existed. claimed Amendments. Courts First Circuits. (In Hassett, 833, 1010, primarily Circuit.) accordingly Amendments (and 1926) 1933. chapter lawfully trusteed settlor-decedents. confirmation Amendments, transferring unchanged mentioned calling 126 454, Singer's 15; 54; Schultz 945; 372; 311; Matthews, 525. binding precedents, reached force, bearing late date.

Classification Label: 11