Sharp v. Commissioner
United States Board of Tax Appeals
1. The income of a trust, created by petitioner and her divorced husband, and payable to petitioner for the support of their minor child, is not taxable to petitioner, because the trust did not discharge any legal obligation of petitioner to support the child. 2. Where a French decree of divorce does not provide for the support of a child, the obligations of the husband to the child are not governed by French law and survive or terminate according to the laws of either the…
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1. The income of a trust, created by petitioner and her divorced husband, and payable to petitioner for the support of their minor child, is not taxable to petitioner, because the trust did not discharge any legal obligation of petitioner to support the child. 2. Where a French decree of divorce does not provide for the support of a child, the obligations of the husband to the child are not governed by French law and survive or terminate according to the laws of either the child's or the father's domicile. 3. Where the trustees of an irrevocable trust are vested with the discretion to…
1Opinion of the Court
*339OPINION.
Leeoix :
As regards the Nancy Carroll Draper trust, respondent argues that three-fourths of the net income, exclusive of capital gains, is taxable to petitioner on the ground that the trust discharged petitioner’s duty to support her daughter, legal or contractual. Douglas v. Willcuts, 296 U. S. 1. He raises no issue as to the applicability of section 166, and it is noted that no such question could be successfully raised, since the power to revoke exists in petitioner only in conjunction with Draper, who holds a substantial adverse interest. See Paul W. Litchfield, 39 B. T. A. 1017.
Res…
2Cases cited8 opinions
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Reinecke v. SmithSupreme Court of the United States · 1933
- Yarborough v. YarboroughSupreme Court of the United States · 1933
- Helvering v. LeonardSupreme Court of the United States · 1940
- Laumeier v. . LaumeierNew York Court of Appeals · 1924
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3Cited by2 opinions
- Helvering v. EvansCourt of Appeals for the Third Circuit · 1942
- Sharp v. CommissionerUnited States Board of Tax Appeals · 1940