Commissioner v. Wemyss, 324 U.S. 303 (1945)

Commissioner v. Wemyss


No. 629


Argued January 9, 1945
Decided March 5, 1945
324 U.S. 303

dg:syll*

Syllabus

1. Pursuant to an antenuptial agreement, respondent made a transfer of property to his prospective wife in consideration of her promise of marriage and to compensate for her loss of trust income which upon her marriage would go to a child by a former marriage. Held, that, under §§ 501 and 503 of the Revenue Act of 1932 and applicable Treasury Regulations, the transfer was a taxable gift in its entirety. P. 306.

2. The decision of the Tax Court that the transfer was not made for a "consideration in money or money’s worth" within the meaning of § 503 is binding on review. P. 307.

3. To relieve a transfer from the gift tax under the Revenue Act of 1932, there must be a consideration in money or money’s worth of benefit to the transferor; detriment to the transferee is insufficient. P. 307.

144 F.2d 78 reversed.

Certiorari, 323 U.S. 703, to review the reversal of a decision Of the Tax Court, 2 T.C. 876, sustaining the Commissioners determination of a deficiency in federal gift taxes.