Commissioner of Internal Revenue v. Hyde

SWAN, Circuit Judge.

The question here presented, like that in the preceding case of Helvering, Commissioner, v. Brooks (C.C.A.) 82 F.(2d) 173, is whether the respondent is taxable on income paid to his divorced wife under an irrevocable trust created by him for her benefit.

On October 29, 1918, the respondent Hyde and his wife entered into an agree ment, which was apparently made in Paris, France. After reciting that Mrs. Hyde was living separate from her husband and was about to institute an action for divorce from him, the agreement provided, among other things, for the custody of the child,…