Estate of Leder v. Commissioner
United States Tax Court
Within 3 years of decedent's death, decedent's wife purchased life insurance on decedent's life and signed the original application as owner. Decedent's wholly owned corporation paid all the premiums on the policy directly to the insurance company.
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Within 3 years of decedent's death, decedent's wife purchased life insurance on decedent's life and signed the original application as owner. Decedent's wholly owned corporation paid all the premiums on the policy directly to the insurance company. Held, under the plain language of sec. 2035(d), I.R.C. 1954, the life insurance policy proceeds are not includable in decedent's gross estate because decedent never possessed any incident of ownership in the policy under sec. 2042. Thus, sec. 2035(d)(2) is inapplicable and sec. 2035(d)(1) precludes application and analysis of sec. 2035(a).
1Opinion of the Court
Estate of Joseph Leder, Deceased, Jeanne Leder, Executrix, Petitioner v. Commissioner of Internal Revenue, Respondent
Estate of Leder v. Commissioner
Docket No. 31194-85
United States Tax Court
89 T.C. 235; 1987 U.S. Tax Ct. LEXIS 110; 89 T.C. No. 20;
August 5, 1987August 5, 1987, Filed
Decision will be entered under Rule 155.
Within 3 years of decedent's death, decedent's wife purchased life insurance on decedent's life and signed the original application as owner. Decedent's wholly owned corporation paid all the premiums on the policy directly to the insurance company. Held, under the plain…
2Cases cited16 opinions
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- Burnet v. HarmelSupreme Court of the United States · 1932
- Central Bank of Washington v. HumeSupreme Court of the United States · 1888
- Huntsberry v. CommissionerUnited States Tax Court · 1984
- United States v. American College of PhysiciansSupreme Court of the United States · 1986
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