Estate of Margrave v. Commissioner
United States Tax Court
Decedent's spouse applied for and owned an insurance policy on the life of the decedent, naming the trustee of a revocable trust created by the decedent as beneficiary. Upon decedent's death, the proceeds were paid to the trustee. Held, decedent did not possess any incident of ownership with respect to such life insurance policy. Held, further, he did not possess a power of appointment over the policy or the proceeds thereof.
1DissentFay, J.
I respectfully dissent from the majority’s conclusion that the proceeds of the insurance policy on decedent’s life are not includable in his gross estate under section 2041. In my opinion, the decedent herein died possessing a general testamentary power of appointment over such proceeds.
As a general rule, section 2041(a) requires the inclusion in the gross estate of the value of any property subject to a general power of appointment. In this regard, a “general power of appointment” is defined as a power under which the donee can appoint the property subject to the power to himself, his…
2Cases cited3 opinions
- Keeter v. United StatesCourt of Appeals for the Fifth Circuit · 1972
- Johnstone v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1935
- Johnstone v. CommissionerUnited States Board of Tax Appeals · 1934