Bullard v. Commissioner
United States Tax Court
1. Payments of proceeds of life insurance policies received by petitioner in installments, at her election exercised after the insured's death, are not taxable to her. Commissioner v. Pierce, 146 Fed.
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1. Payments of proceeds of life insurance policies received by petitioner in installments, at her election exercised after the insured's death, are not taxable to her. Commissioner v. Pierce, 146 Fed. (2d) 388, affirming 2 T. C. 832, followed. 2. Pursuant to terms of decedent's will, monthly payments made by executors to petitioner, to be charged against her share in the income from his estate pending settlement of the estate and establishment of trust under which she was to receive the net income from its corpus for life, held, taxable to her as income. Irwin v. Gavit, 268 U.S. 161.
1Opinion of the Court
OPINION.
Van Fossan, Judge-.
The petitioner submits that the first issue is governed by the decision of the Circuit Court of Appeals for the Second Circuit (in which this case arises) in Commissioner v. Pierce, 146 Fed. (2d) 388, affirming 2 T. C. 832. In that case the petitioner elected, after the death of the insured, to receive the proceeds of the policy in installments for a term of years and as long thereafter as she should live. Here the facts are substantially identical.
In the Pierce case we held, and the Circuit Court of Appeals affirmed, that such installment payments were not taxable…
2Cases cited3 opinions
- Irwin v. GavitSupreme Court of the United States · 1925
- Burnet v. WhitehouseSupreme Court of the United States · 1931
- Pierce v. CommissionerUnited States Tax Court · 1943
3Cited by2 opinions
- Allen v. State Tax CommissionMassachusetts Supreme Judicial Court · 1958
- Bullard v. CommissionerUnited States Tax Court · 1945