Thomas L. Simmons and Thomas L. Simmons as Conservator for Anna J. Simmons v. United States

Appellant, as conservator of Anna J. Simmons (hereinafter taxpayer) seeks recovery of $126,377 income tax paid for the years 1973 and 1974, contending that a gift in the form of a charitable remainder annuity trust had been made in 1973. This suit was brought when the Internal Revenue Service disallowed taxpayer’s claims. The question presented is whether under the facts taxpayer had met his burden of establishing that a charitable remainder of ascertainable value existed on November 14, 1973, the date on which the trust was established.

The facts are not in dispute. The trust on the date of its establishment in 1973 qualified as a charitable remainder annuity trust under § 664 of the Internal Revenue Code, 26 U.S.C. § 664 . It was funded by shares of corporate capital stock then having a value of $439,500. Under its terms, an annuity equal to 9% of the value of the trust corpus was to be paid to trustor Simmons during her lifetime. The trust named as a secondary life annuitant trustor’s son Ivan Heller, provided he should survive Simmons. ■ It provided that upon the death of Simmons and Heller the remainder of the trust would be distributed to three charitable institutions. The…