United States v. Tingey

The district court permitted the government to foreclose on federal tax liens on a ski cabin titled in the name of the D.E. Brown Family Trust, whose beneficiaries were Douglas Brown's wife and children. The taxes were owed by Douglas Brown (Brown) and his wife, not the trust, but the court found that the Browns were the beneficial owners of the cabin because Brown had a purchase-money resulting trust (PMRT) arising from his having purchased the cabin and then conveyed it to the Family Trust. The trustee of the Family Trust, Robert Tingey, appealed. He argued: (1) that the government waived its claim that the Browns held the beneficial interest in the cabin; and (2) that the district court erroneously concluded that a PMRT arose under Utah law. Upon review, the Tenth Circuit concluded that the government did not intentionally relinquish its claim to the cabin, and the evidence supported the district court's determination that Brown intended the trust to hold the cabin for his benefit. Accordingly, the Court affirmed the district court's judgment. View "United States v. Tingey" on Justia Law