James Clark McReynolds

“ An annuity given by will is payable primarily out of the income from the estate. The residuary estate of Bennett produced enough during 1921 to meet all bequeathed annuities. The payments received by Mrs. Whitehouse during that year were, in fact, made from such income. ”

“ Whitehouse was not one to be paid from income, but of a sum certain, payable at all events during each year so long § s he should live. It would be an anomaly to tax the receipts for one year and exempt them for another simply because executors paid the first from income received and the second out of the corpus. The will directed payment without reference to the existence or absence of income. ”

“ It held that the bequest to her was within paragraph (b) , item (3) , section 213, Revenue Act of 1921, and therefore exempt. The Circuit Court of Appeals, First Circuit (38 F. (2d) 162) , approved that conclusion. ”