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Helvering Vs. Leonard

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  • US Supreme Court
  • Apr 22, 1940

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  1. Douglas Vs. Willcuts US Supreme Court · Nov 11, 1935
  2. U.S. 80 (1940) U.S. Supreme Court Helvering v. Leonard
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  3. U.S. 80 (1940) Helvering v. Leonard
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  4. of the bonds, a personal obligation, though contingent, continued to exist pro tanto, and the rule of Douglas v. Willcuts
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  5. the New York court lacked power after the divorce to add to his personal obligations in any eventuality. Helvering v. Fitch
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  6. wife. We granted certiorari, 309 U.S. 644, because of the probable conflict of the decision below with Douglas v. Willcuts
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  7. U. S. 1 , and Helvering v. Fitch
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  8. to support his wife, and therefore that the trust income payable to her was taxable to him under the rule of Douglas v. Willcuts
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  9. the trust into at least partial security for the total allowance to her. In either of such events, the rule of Douglas v. Willcuts
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  10. supra, would apply. See Helvering v. Fitch
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  11. sure, that personal obligation was contingent. But we do not deem that to be material. We recently stated in Helvering v. Fitch
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  12. supra, p. 309 U. S. 156 , that, under this statutory scheme escape from the rule of Douglas v. Willcuts
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  13. wholly contingent obligations, whether contractual or otherwise, is adequate to support the results reached in Douglas v. Willcuts
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  14. Old Colony Trust Co. v. Commissioner
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  15. United States v. Boston
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  16. or where the taxpayer creates a trust, the income of which is applied to the discharge of his debt. See Helvering v. Blumenthal
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  17. citing Galusha v. Galusha
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  18. Cain v. Cain
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  19. Hamlin v. Hamlin
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  20. App.Div. 168, 230 N.Y.S. 51. If the case was here on application of local law under the rule of Erie Railroad Co. v. Tompkins
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  21. of the normal incidents of the federal income tax. For that purpose, he invokes the aid of New York law. In Helvering v. Fitch
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  22. supra, we stated that, where the divorced husband desires to avoid the general rule expressed in Douglas v. Willcuts
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  23. See Cain v. Cain
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  24. Goldfish v. Goldfish
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  25. Schnitzer v. Buerger
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  26. not only where an ordinary contract may be set aside, but also where they are unfair, inequitable, and unjust. Hamlin v. Hamlin
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  27. supra. Cf. Tirrell v. Tirrell
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  28. More important to this case, however, are Kunker v. Kunker
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  29. App.Div. 641, 246 N.Y.S. 118, and Holahan v. Holahan
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  30. Holahan v. Holahan
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  31. supra, 234 App.Div. at 574, 255 N.Y.S. at 695. Cf. Severance v. Severance
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  32. U. S. 87 the provision in the separate agreement, approved by the decree, is for support and maintenance ( Kunker v. Kunker
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  33. and Holahan v. Holahan
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  34. supra ), but not where it is in settlement of claims of ownership to specified property. Goldfish v. Goldfish
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  35. and Schnitzer v. Buerger
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  36. were designed to afford support and maintenance for the wife. Unlike the purpose of the trust agreement in Schnitzer v. Buerger
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  37. Reversed. MR. JUSTICE REED concurs in the result for the reasons stated in the dissent in Helvering v. Fuller
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  38. U.S. Supreme Court Helvering v. Leonard
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  39. of Douglas v. Willcuts
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  40. Helvering v. Fitch
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  41. and Helvering v. Fitch
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  42. See Helvering v. Fitch
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  43. See Helvering v. Blumenthal
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  44. Galusha v. Galusha
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  45. of Erie Railroad Co. v. Tompkins
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  46. In Helvering v. Fitch
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  47. Cf. Tirrell v. Tirrell
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  48. Kunker v. Kunker
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  49. Cf. Severance v. Severance
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  50. Helvering v. Fuller
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