Morton v. Commissioner
United States Tax Court
Decedent, as beneficiary of three insurance policies on the life of her husband, became entitled to proceeds thereof upon his death in 1934. Instead of taking the lump sum proceeds, she selected one of the optional modes of settlement available to the beneficiary under the policies whereby interest and so much of the proceeds as she requested would be paid to her during her lifetime, and upon her death the balance would be paid to her children.
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Decedent, as beneficiary of three insurance policies on the life of her husband, became entitled to proceeds thereof upon his death in 1934. Instead of taking the lump sum proceeds, she selected one of the optional modes of settlement available to the beneficiary under the policies whereby interest and so much of the proceeds as she requested would be paid to her during her lifetime, and upon her death the balance would be paid to her children. Decedent never requested any part of the principal proceeds. Held, the proceeds are includible in decedent's gross estate as a transfer of property…
1Opinion of the Court
OPINION.
KeRn, Judge-.
Respondent determined a deficiency of $8,098.73 m estate tax, only part of which is in question.
The sole adjustment contested by petitioner is respondent’s inclusion as part of the decedent’s gross estate, under section 811 (c), (d) or (f) of the Internal Revenue Code, of the sum of $25,178.68 representing proceeds of policies of insurance on the life of decedent’s husband which were payable to decedent, as sole beneficiary under the policies, upon the death of her husband in 1934, but which decedent chose to have held by the insurer, paying interest and so much of the…
2Cases cited3 opinions
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Estate of Spiegel v. CommissionerSupreme Court of the United States · 1949
- Higgs v. CommissionerUnited States Tax Court · 1949
3Cited by9 opinions
- In Re Estate of Ida Jarvis Pyle. Robert M. Pyle v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1963
- The National City Bank of Cleveland, of the Estate of Pearl C. Dauby, Deceased v. United StatesCourt of Appeals for the Sixth Circuit · 1966
- Whiteley v. United StatesDistrict Court, W.D. Washington · 1963
- Tuohy v. CommissionerUnited States Tax Court · 1950
- Estate of Miller v. CommissionerUnited States Tax Court · 1972
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