Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 54-92

1954-1 C.B. 207

Caution: Obsoleted by Rev. Rul. 82-127

Full Text

Rev. Rul. 54-92

Where a gift is made in trust the terms of which provide that the trustee is to pay the income to a designated beneficiary and that the trustee may distribute such parts of the trust principal to the beneficiary as in his uncontrolled discretion he may deem necessary and proper, it is held that the income which will be distributed to the beneficiary, which is the beneficiary's present interest, is not susceptible of determination and that under such circumstances no exclusion is allowable under section 1003(b)(3) of the Internal Revenue Code with respect to the gift made of the right to receive income from the property transferred. See Sylvia H. Evans v. Commissioner, 198 Fed. (2d) 435.