Estate of Headrick v. Comm'r
United States Tax Court
D, a decedent, established an irrevocable inter vivos trust with B, a bank, as trustee. The trust agreement drafted by D authorized, but did not require, B to invest the trust principal in life insurance policies. B exercised independent discretion in acquiring a whole life insurance policy on D's life. D contributed cash annually to the trust in amounts sufficient to meet the trust's cumulative monthly premium obligations.
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D, a decedent, established an irrevocable inter vivos trust with B, a bank, as trustee. The trust agreement drafted by D authorized, but did not require, B to invest the trust principal in life insurance policies. B exercised independent discretion in acquiring a whole life insurance policy on D's life. D contributed cash annually to the trust in amounts sufficient to meet the trust's cumulative monthly premium obligations. D died in an automobile accident within three years of the trust's purchase of the policy. Held, D never possessed "incidents of ownership" in the life insurance policy…
1Opinion of the Court
NlMS, Chief Judge:
Respondent determined a deficiency in petitioners’ Federal estate tax liability of $192,881.15. The issue for decision is whether the proceeds of a life insurance policy purchased within 3 years of the decedent’s death by a trust established by the decedent are properly includable in the decedent’s gross estate under section 2035(a). (All section references are to sections of the Internal Revenue Code or the Estate Tax Regulations, as the case may be, in effect at decedent’s death. All Rule references are to the Tax Court Rules of Practice and Procedure.) Resolution of this…
2Cases cited8 opinions
- Bel v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- The Detroit Bank & Trust Company, of the Estate of Fred W. Ritter, Deceased v. United StatesCourt of Appeals for the Sixth Circuit · 1972
- Estate of Kurihara v. CommissionerUnited States Tax Court · 1984
- Estate of Leder v. CommissionerUnited States Tax Court · 1987
- Grover H. Hope, of the Estate of Beverly J. Hope, Deceased v. United States of America, Internal Revenue ServiceCourt of Appeals for the Fifth Circuit · 1982
3 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Estate of Joseph Leder, Deceased, Jeanne Leder v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1989
- Estate of Marks v. CommissionerUnited States Tax Court · 1990
- Estate of Frank Martin Perry, Sr., Deceased, Michael C. Perry, Whit S. Perry and Robert S. Perry, Co-Executors v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1991
- Estate of Ard v. CommissionerUnited States Tax Court · 1990
- Estate of Headrick v. Comm'rUnited States Tax Court · 1989
1 more not listed; retrieve them via the Exa API.