Letts v. Commissioner
United States Board of Tax Appeals
The settlor of a trust, established pursuant to an agreement made with his wife in contemplation of divorce, held, not taxable on the trust income distributed to his divorced wife for her maintenance and support where the divorce decree releasing him from all obligation to support was not subject to later modification and the settlor made no guarantees of income or principal in the trust instrument.
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The settlor of a trust, established pursuant to an agreement made with his wife in contemplation of divorce, held, not taxable on the trust income distributed to his divorced wife for her maintenance and support where the divorce decree releasing him from all obligation to support was not subject to later modification and the settlor made no guarantees of income or principal in the trust instrument. Helvering v. Fuller,310 U.S. 69; held, further, the settlor is taxable on the amounts of trust income distributed to his divorced wife and used by her for the support of his minor children.
1Opinion of the Court
*1175OPINION.
Hill:
The several issues raised here for decision are (1) whether the petitioner is taxable on the income of a trust distributed to his divorced wife where the trust was established pursuant to a pre-divorce agreement by which the petitioner’s wife released him from all claims to support and maintenance in return for his establishment of the trust here involved, and (2) whether any part of the income so distributed is taxable to the petitioner because used by the beneficiary for the support of petitioner’s children as provided in the trust instrument.
The petitioner urges as an…
2Cases cited9 opinions
- Anderson v. WilsonSupreme Court of the United States · 1933
- Helvering v. FitchSupreme Court of the United States · 1940
- Helvering v. LeonardSupreme Court of the United States · 1940
- Helvering v. FullerSupreme Court of the United States · 1940
- Sweeney v. SweeneyNevada Supreme Court · 1919
4 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Spruance v. Director of RevenueSuperior Court of Delaware · 1971
- Garland v. CommissionerUnited States Tax Court · 1943
- Letts v. CommissionerUnited States Board of Tax Appeals · 1940