Estate of Smith v. Commissioner
United States Tax Court
Decedent's employment agreement provided that if the employer-company, owner of two life insurance policies on decedent's life, elected not to pay the premiums on or to surrender and terminate the policies, the employer-company would first give decedent the right to take an assignment of the policies in exchange for their cash value.
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Decedent's employment agreement provided that if the employer-company, owner of two life insurance policies on decedent's life, elected not to pay the premiums on or to surrender and terminate the policies, the employer-company would first give decedent the right to take an assignment of the policies in exchange for their cash value. Held, at his death, decedent's rights, being too contingent and under another's control, were not "incidents of ownership" under sec. 2042(2), I.R.C. 1954; therefore, the proceeds of the policies are not includable in his gross estate. Held, further, under Key…
1Opinion of the Court
OPINION
Tietjens, Judge:
Respondent determined a deficiency of $38,636.82 in petitioner’s Federal estate tax. The only issues for our determination are (1) whether decedent possessed any incident of ownership in two life insurance policies sufficient under section 2042(2)1 to include their proceeds in his gross estate and (2) whether petitioner is entitled to reasonable attorney’s fees under the provisions of Pub. L. 94-559, 90 Stat. 2641, October 19,1976, amending 42 U.S.C. sec. 1988.
This case was fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation…
2Cases cited16 opinions
- Dixon v. United StatesSupreme Court of the United States · 1965
- Helvering v. New York Trust Co.Supreme Court of the United States · 1934
- Commissioner v. Estate of NoelSupreme Court of the United States · 1965
- Lash's Products Co. v. United StatesSupreme Court of the United States · 1929
- Key Buick Co. v. CommissionerUnited States Tax Court · 1977
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3Cited by3 opinions
- Estate of Smead v. CommissionerUnited States Tax Court · 1982
- Estate of Smead v. CommissionerUnited States Tax Court · 1982
- Estate of Smith v. CommissionerUnited States Tax Court · 1979