Estate of Gilman v. Commissioner of Internal Revenue, 65 T.C. 296 (1975) 65 T.C. 296 United States Tax Court ESTATE OF CHARLES GILMAN, DECEASED, HOWARD GILMAN, CHARLES GILMAN, JR., AND SYLVIA P. GILMAN, EXECUTORS, PETITIONERS v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT Docket No. 2730-72. I Filed November io, t975• Attorneys and Law Firms *296 James B. Lewis and Maurice Austin, for the petitioners. Agatha L. Vorsanger, for the respondent. In 1948, decedent owned 60 percent of the common stock and a substantial block of the preferred stock of a corporation. In that year he transferred the common stock to a trust of which he was one of three trustees. He continued to serve as a trustee of that trust and as a director and chief executive officer of the corporation until he died in 1967. Held, decedent did not retain the enjoyment of the entrusted stock or the right to designate the person or persons who would enjoy the stock of the income therefrom within the meaning of sec. 2036(a)( I) or 2036(aX2), I.R.C. 1954. Opinion FEATHERSTON, Judge: The Commissioner determined a deficiency in the Federal estate tax due from the Estate of Charles Gilman, deceased, in the amount of $18,252,485.92. By order of Stockholder ..414•P• the Court dated January 10, 1973, certain secondary issues were severed for a later trial, and the Commissioner has since conceded one of the remaining adjustments, leaving only the following issue for decision at this time: Whether the value of certain shares of stock transferred by decedent to an irrevocable trust in 1948 is required to be included in decedent's *297 gross estate under section 2036(a).' The answer depends upon whether decedent retained the enjoyment of the stock within the meaning of section 2036(a)( I) or the right to designate who shall enjoy the stock or the income therefrom within the meaning of section 2036(a)(2). FINDINGS OF FACT Charles Gilman (hereinafter decedent or Charles) di