Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 54-91

1954-1 C.B. 207

Caution: Revoked by Rev. Rul. 73-405

Full Text

Rev. Rul. 54-91

Gifts were made in trust, the terms of which provide that the trustee in his uncontrolled discretion is to use the net income and principal for the support, education, or benefit of the donor's minor children in such amounts and at such times as shall be in accordance with the needs and best interests of the beneficiaries as though he were holding the property as guardian of the beneficiaries. No person was ever appointed as legal guardian. Held , since there was no legally appointed guardian to demand immediate distribution, and the manner, method, and time in which the trustee shall use the income and principal of the trust for the support, education, or benefit of the beneficiaries is discretionary with the trustee, the transfers in trust constituted gifts of future interests in property against which no exclusions are allowable under section 1003 of the Internal Revenue Code. See Arthur C. Stifel v. Commissioner , 197 Fed.(2d) 107.