Richard D. Leuschner v. First Western Bank and Trust Company, a California Banking Corporation, and United States of America

JAMES ALGER FEE, Circuit Judge.

In this case there are only two questions for decision. First, the trial court held that the right of the United States to collect unpaid income taxes prevails over spendthrift provisions of a trust notwithstanding the statute of the State of California, which exempts a portion of the right of a beneficiary thereunder for his education and support. Second, it was also held that the claim of the United States for preference on the unpaid taxes, filed in a voluntary bankruptcy proceeding of the beneficiary, did not bar a subsequent adjudication in the District…