Sadie Katz v. United States

Appellant is the widow of Leroy Joseph Katz, who died a resident of California on February 27, 1960. She brought this action under 28 U.S.C. § 1846 (a) (1) to obtain a refund of Federal Estate Tax. The trial court entered a summary judgment against her (Katz v. United States, S.D.Cal.C.D., 1966, 255 F.Supp. 642 ) and she appeals. We reverse.

On August 29, 1956, Title Insurance and Trust Company executed a Declaration of Trust, in which “Leroy Joseph Katz, a married man,” was named Trustor. This paper acknowledged receipt by the Trust Company, without consideration, of real and personal property from Leroy, and that the property was to be held in trust for the benefit of Sadie and of Leroy’s children, their surviving spouses and surviving issue. Sections One, Two and Three give the trustee the usual powers to manage the properties, collect income, and invest the trust’s ■funds. Then follows Section Four:

Succeeding sections, Five through Eleven, provide for disposition of the property after Leroy’s death. Sadie is a life income beneficiary. She is to be succeeded by the children and they in turn by their issue, with certain provisions for the surviving spouses of children and for…