The U.S. Supreme Court case Lederer v. Stockton (1922) revolved around the issue of estate taxation and whether or not a trust, created by an individual prior to their death, could be included in the gross estate for tax purposes. The decedent, Derbyshire, had transferred property into a trust with income payable to his wife during her lifetime and upon her death; the principal was then distributed among other beneficiaries named in the will. After Derbyshire's death, Lederer as Collector of Internal Revenue for Pennsylvania argued that this transfer should be considered part of Derbyshire’s taxable estate under federal law at that time which stated any transfers made without consideration where possession is retained until death are subject to inclusion in gross estate calculations. However, Stockton as trustee contested this claim arguing that since it was an irrevocable transfer made during life it shouldn’t be included within taxable assets after death. The Supreme Court ruled against Lederer stating that because Mr.Derbyshire did not retain control over disposition of either income or principal from date of creation till his demise he didn't possess power necessary for such transfers to fall within purview of statute thus exempting them from being taxed posthumously.

The dissenting opinion in the case of Lederer v. Stockton argued that the majority's decision to tax a trust fund, which was created for charitable purposes, contradicted previous court rulings and violated principles of equity. The dissenters contended that the trust should not be taxed because it was established solely for philanthropic objectives and did not generate any income or profit for individual beneficiaries. They also pointed out inconsistencies in how similar cases had been handled previously by courts, suggesting an arbitrary application of law. Furthermore, they expressed concerns about potential negative impacts on charitable giving if such trusts were subject to taxation.