WOLDER V. COMMISSIONER 493 F.2d 608 (2nd Cir. 1974) CASE BRIEF

WOLDER V. COMMISSIONER

493 F.2d 608 (2nd Cir. 1974)

NATURE OF THE CASE: This was a consolidation of two cases about the status of bequests made instead of fees paid to attorneys. Wolder (D) and Commissioner (P) sought review of the judgment of the Tax Court, which held that the stock and cash received by D under his client's will constituted taxable income, under I.R.C. 61, and was not exempt as a bequest, under I.R.C. 102, and that the stock and cash were constructively received in the year of the client's death.

FACTS: Wolder (D) entered into an agreement with Boyce whereby D would provide Boyce with legal services as she would require during her lifetime and upon her death bequeath certain property to D. When Boyce died she gave D property as per the agreement that was worth $15,845. There was no dispute that D had rendered legal services to Boyce over her lifetime and had not billed her for those services. D argued that this legacy was specifically excluded under Section 102(a). D relied on case law that stated a bequest under 102(a) had not been restricted so as to exclude bequests made on account of some consideration flowing from the beneficiary to the decedent. The Tax Court held that the bequest constituted income under section 61 and was not exempt under section 102. This appeal resulted.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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