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
ESTATE OF FRANK R. MCDERMAND, JR., DECEASED, HELEN H. NELSON, ADMINISTRATRIX, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
McDermand v. Commissioner
Docket No. 74852.
United States Board of Tax Appeals
36 B.T.A. 1138; 1937 BTA LEXIS 618;
December 15, 1937, Promulgated
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…
2Cases cited5 opinions
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Ballinger v. CommissionerUnited States Board of Tax Appeals · 1931
- Clark v. Equitable Life Assur. Soc.U.S. Circuit Court for the District of Eastern Pennsylvania · 1904
- Bank of America Nat'l Trust & Sav. Asso. v. CommissionerUnited States Board of Tax Appeals · 1936
- McDermand v. CommissionerUnited States Board of Tax Appeals · 1937