Anderson v. Wilson, 289 U.S. 20 (1933)

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Anderson v. Wilson

No. 460

Argued February 8, 9, 1933
Decided March 13, 1933 *
289 U.S. 20

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

1. A New York will, providing for the liquidation of residuary real estate, the proceeds of which it bequeathed to designated beneficiaries, directed the executors within the period of two lives in being to dispose of the property, as and when in their judgment it could be sold to advantage. They were free to form and use for this purpose a holding company if they saw fit, and to decide, in their discretion, whether to distribute the proceeds of any sale or to retain them for further conversion before distribution. Until the time of distribution, the net income was to be paid semiannually to the beneficiaries.

Held:

(1) That the executors took the fee title in trust, and not merely a power. P. 24.

(2) By the law of New York, where land is left by will to executors to convert into money and distribute, the executors take the fee title upon the trust, and the beneficiaries have no interest in the corpus other than to enforce performance of the trust. P. 25.

2. A loss resulting from a sale of real estate by executors holding fee title on a trust to manage and sell and to distribute the proceeds is a loss of the estate, and cannot be deducted by the beneficiary in making his personal return of income under the Revenue Act of 1921. P. 26.

60 F.2d 52 affirmed.

Certiorari, 287 U.S. 592, on cross petitions to review a judgment reversing a judgment -- 51 F.2d 268 -- against the Tax Collector and directing a retrial. Upon this review, the reversal is affirmed, but the cause is remanded to the District Court with direction to dismiss the complaint.