McDermand v. Commissioner
United States Board of Tax Appeals
Decedent took out six policies of insurance upon his life, aggregating $200,000. In each policy he reserved the right to change the beneficiary. He contracted with a corporation, of which he was president, to pay the premiums and pledged to it the policies as collateral security. His wife, who was the sole beneficiary of each policy, was a party to the agreement.
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Decedent took out six policies of insurance upon his life, aggregating $200,000. In each policy he reserved the right to change the beneficiary. He contracted with a corporation, of which he was president, to pay the premiums and pledged to it the policies as collateral security. His wife, who was the sole beneficiary of each policy, was a party to the agreement. Among other things, the wife was to receive the proceeds of the policies as trustee for the corporation to the extent that the proceeds were required to repay the premiums advanced, with interest, and $25,000 if decedent failed to…
1Opinion of the Court
*1142OPINION.
ARNOLD:
The controlling provisions of the statute occur in the last portion of section 302 (g) of the Revenue Act of 1926, which is set out in full in the margin.1 It is stipulated that respondent has given effect to the $40,000 exemption, and to the payments made pursuant to the agreements of August 8, 1929, and April 26, 1930, in determining the “amount receivable by all other beneficiaries.” The question is not as to the proper amount to be included, but whether any amount should be included in determining the value of the gross estate.
It is petitioner’s contention that there was no…
2Cases cited2 opinions
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Clark v. Equitable Life Assur. Soc.U.S. Circuit Court for the District of Eastern Pennsylvania · 1904
3Cited by2 opinions
- Nelson v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1939
- McDermand v. CommissionerUnited States Board of Tax Appeals · 1937