Estate of Silverman v. Commissioner
United States Tax Court
The decedent assigned a life insurance policy on his life to his son, approximately 6 months prior to his death. After the transfer, the son paid the insurance premiums. Held, the transfer of the life insurance policy was made in contemplation of death within the meaning of sec. 2035, I.R.C. 1954. Held, further, the quantum of inclusion is that portion of the face value equal to the ratio of premiums paid by the decedent to total premiums paid.
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The decedent assigned a life insurance policy on his life to his son, approximately 6 months prior to his death. After the transfer, the son paid the insurance premiums. Held, the transfer of the life insurance policy was made in contemplation of death within the meaning of sec. 2035, I.R.C. 1954. Held, further, the quantum of inclusion is that portion of the face value equal to the ratio of premiums paid by the decedent to total premiums paid. Held, further, the gross estate must also include certain jewelry having a fair market value of $ 780 which the decedent inherited from his wife.
1Opinion of the Court
Sterkett, Judge:
Respondent determined a deficiency in petitioner’s Federal estate tax in the amount of $2,155.01. However, $132.08 of said amount was attributable to the assessment of the penalty imposed by section 6651(a), I.R.C. 1954,1 which was abated, leaving a net deficiency of $2,022.93. Respondent subsequently conceded the deductibility of certain legal expenses, leaving the following issues for our consideration:(1) Whether the assignment of a life insurance policy by the decedent, Morris R. Silverman, to his son, petitioner Avrum Silver-man, was made “in contemplation of death”…
2Cases cited19 opinions
- United States v. WellsSupreme Court of the United States · 1931
- Milliken v. United StatesSupreme Court of the United States · 1931
- Estate of Johnson v. CommissionerUnited States Tax Court · 1948
- First Trust & Deposit Co. v. ShaughnessyCourt of Appeals for the Second Circuit · 1943
- Bel v. United StatesCourt of Appeals for the Fifth Circuit · 1971
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3Cited by5 opinions
- Estate of Kurihara v. CommissionerUnited States Tax Court · 1984
- In Re Estate of Morris R. Silverman. Avrum Silverman v. Commissioner of Internal Revenue, Defendant-RespondentCourt of Appeals for the Second Circuit · 1975
- Estate of Friedberg v. CommissionerUnited States Tax Court · 1992
- Estate of Kurihara v. CommissionerUnited States Tax Court · 1984
- Estate of Silverman v. CommissionerUnited States Tax Court · 1973