Keck

Plaintiff filed an action for refund of a gift tax paid by him to the State of California. This is an appeal by the Controller of the State of California from the judgment entered in the above entitled action in favor of plaintiff and against the defendant on October 3,1963.

The issue which is presented for decision on this appeal is whether or not the plaintiff, on or about December 12, 1958, made a transfer of the remainder interest in the then existing principal of the trust subject to the California Gift Tax Act. within the meaning of California Revenue and Taxation Code sections 15101 et seq., when he renounced all of his rights to direct payment of the trust corpus to the life in *41 come beneficiary, Howard Keck, and also renounced all power to name himself trustee of the trust.

On December 6, 1933, plaintiff executed a written declaration of trust and transferred assets to the trustee, without consideration. Under the terms of the trust instrument, the income was to be paid unconditionally to Howard Keek (son of the trustor) for his life, and he was given a testamentary power to appoint income to his issue in the event of his death prior to the termination of the trust.…