https://www.taxtmi.com/caselaws?id=66672 A transfer to a wife and sons is not excluded from gift-tax as a family arrangement unless there is a factual basis of antecedent rights, a bona fide settlement of family claims, or evidence of an actual family dispute; on the facts, that foundation was absent, so the exemption claim failed. Services rendered by the sons can constitute valuable consideration and may justify a reasonable remuneration deduction even without a prior wage agreement; the transfer was therefore not wholly gratuitous to that extent, and only the balance remained taxable as a gift. The allowable deduction was increased on the available material, reducing the taxable gift accordingly. en-us Mon, 18 Jun 1984 00:00:00 +0530 Sat, 05 Mar 2011 15:10:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66672 A transfer to a wife and sons is not excluded from gift-tax as a family arrangement unless there is a factual basis of antecedent rights, a bona fide settlement of family claims, or evidence of an actual family dispute; on the facts, that foundation was absent, so the exemption claim failed. Services rendered by the sons can constitute valuable consideration and may justify a reasonable remuneration deduction even without a prior wage agreement; the transfer was therefore not wholly gratuitous to that extent, and only the balance remained taxable as a gift. The allowable deduction was increased on the available material, reducing the taxable gift accordingly. Case-Laws Income Tax Mon, 18 Jun 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66672