Urquhart

Petition to review the decision of the United States Board of Tax Appeals determining deficiencies in petitioner taxpayers’ income tax for the years 1935 and 1936.

Taxpayers are the testamentary trustees of a trust created by the will of E. H. Edwards, deceased. In computing their income taxes for the years involved, they took a deduction for certain payments which they had made to the Bank of California National Association, another trustee under the will, on the theory that they were ■ distributions to a beneficiary *702 within the meaning of Section 162 of the Revenue Act of 1934 1 , c. 277, 48 Stat. 680 , 26 U.S.C.A. Int.Rev.Code, § 162. The deficiency found by the Board arises from a disallowance of the deductions.

The pertinent provisions of the decree of distribution 2 setting up the terms of the trust may be summarized as follows: “Unless sooner terminated, these trusts and this trust estate” shall continue until George Sterling Edwards becomes thirty years of age, when “the corpus or principal of said trust estate” is to be divided in half, and one-half vests in him and the other half is to continue in trust for Cynthia Ann Edwards. If she dies without issue prior to…