Robert E. Hamilton and Mary v. Hamilton v. United States

Taxpayers sued in the district court for a refund of $32,490.66 paid in gift taxes under a deficiency assessment. They appeal from a summary judgment for the government. We affirm.

No material issue of fact remained after the relevant documents had been produced before the court. Robert and Mary Hamilton, in 1964, as owners of substantial farming property, executed a document called “Partnership and Trust Agreement”. This instrument conveyed certain farm real property to named trustees. It provided that during the life of the “trust” (which was to terminate on September 23, 1982) the “trustees” would have complete authority to manage the property.

The agreement’s distribution clause provided that the trustees “shall annually, pay to each Beneficiary or apply on his or her behalf, * * * [his] share of such income from this Trust, and so much of the principal thereof as they shall deem advisable, and shall accumulate for each of such Beneficiaries all income not so distributed, which shall be added to the principal.”

The “beneficiaries” were Robert and Mary Hamilton, their four children, a family corporation, and two individuals who were, with Robert Hamilton, also named…