Helvering v. Leonard

This case involves the question of the taxability to the grantor under the Revenue Act of 1928 (45 Stat. 791) of income from a so-called alimony trust which is payable to his divorced wife. We granted certiorari because of the probable conflict of the decision below with Douglas v. Willcuts, 296 U. S. 1, and Helvering v. Fitch, 309 U. S. 149.

In 1928 respondent’s wife instituted suit in New York-for an absolute divorce. On June 4, 1929, while that suit was pending, respondent and his wife entered into a separation agreement and, together with a corporate trustee, executed a trust agreement.…