Stanley v. Commissioner
United States Board of Tax Appeals
A husband created an irrevocable trust for his wife's benefit without color of alimony, and, after beginning a divorce action against her two years later in Illinois, transferred additional securities to the trust in consideration of her release of all claims growing out of the marital relation. A divorce decree was granted, denying the wife alimony.
Read the full summary
A husband created an irrevocable trust for his wife's benefit without color of alimony, and, after beginning a divorce action against her two years later in Illinois, transferred additional securities to the trust in consideration of her release of all claims growing out of the marital relation. A divorce decree was granted, denying the wife alimony. Since the trust agreement was a final settlement and the court has no jurisdiction to modify the decree, the husband has no continuing marital obligation to discharge, and the trust income is not taxable to him.
1Opinion of the Court
WILLIAM H. STANLEY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Stanley v. Commissioner
Docket No. 96558.
United States Board of Tax Appeals
41 B.T.A. 1233; 1940 BTA LEXIS 1080;
May 24, 1940, Promulgated
A husband created an irrevocable trust for his wife's benefit without color of alimony, and, after beginning a divorce action against her two years later in Illinois, transferred additional securities to the trust in consideration of her release of all claims growing out of the marital relation. A divorce decree was granted, denying the wife alimony. Since the trust agreement was a…
2Cases cited1 opinion
- Stanley v. CommissionerUnited States Board of Tax Appeals · 1940