Goulder v. Commissioner
United States Board of Tax Appeals
Petitioner created a trust, with himself as trustee, the income of which was payable to his wife, in the discretion of the trustee at any time at or before its termination, which was to occur upon the happening of one of four events: September 30, 1939; the death of the settlor; the death of the beneficiary during the life of the settlor; or upon receipt by the trustee of an instrument in writing, signed by the settlor and his wife.
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Petitioner created a trust, with himself as trustee, the income of which was payable to his wife, in the discretion of the trustee at any time at or before its termination, which was to occur upon the happening of one of four events: September 30, 1939; the death of the settlor; the death of the beneficiary during the life of the settlor; or upon receipt by the trustee of an instrument in writing, signed by the settlor and his wife. The principal of the trust was then to revert to the settlor or his estate. There was no reference in the trust agreement to the use of the income in the hands of…
1Opinion of the Court
*673OPINION.
Leech :
The respondent determined the disputed deficiency by taxing the income received but not distributed by the trust, in 1934, to the petitioner, settlor. He supports this action on three grounds: (1) The trust constituted a mere assignment of future income, which left such income taxable to the grantor under the doctrine of Lucas v. Earl, 281 U. S. 111; (2) the trust is in the nature of a maintenance trust, the income of which is taxable to petitioner under the principle announced in Douglas v. Willcuts, 296 U. S. 1; and (3) the income of the trust is taxable to petitioner under…
2Cases cited9 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Lucas v. EarlSupreme Court of the United States · 1930
- Blair v. CommissionerSupreme Court of the United States · 1937
- Reinecke v. Northern Trust Co.Supreme Court of the United States · 1929
- Douglas v. WillcutsSupreme Court of the United States · 1935
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3Cited by2 opinions
- Goulder v. CommissionerUnited States Board of Tax Appeals · 1939
- Irvine v. CommissionerUnited States Board of Tax Appeals · 1942