Estate of Silverman v. Commissioner
United States Tax Court
Decedent was a participant in his corporate employer's employees' pension plan, which plan qualified under sec. 401(a), I.R.C. 1954. This plan provided for a monthly annuity to participants to commence in all events when the participant reached 65. Decedent was not a stockholder of his corporate employer or a member of the pension committee. When decedent terminated his employment prior to reaching 65, his five annuity contracts were assigned absolutely to him.
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Decedent was a participant in his corporate employer's employees' pension plan, which plan qualified under sec. 401(a), I.R.C. 1954. This plan provided for a monthly annuity to participants to commence in all events when the participant reached 65. Decedent was not a stockholder of his corporate employer or a member of the pension committee. When decedent terminated his employment prior to reaching 65, his five annuity contracts were assigned absolutely to him. He surrendered three of these contracts for their cash surrender value and had borrowed prior to his death on the security of the…
1ConcurrenceHall, J.
While I concur in the results reached by the majority, I cannot subscribe to some of the language in the opinion. In my view, the annuity proceeds are includable in decedent’s gross estate solely because decedent, by his inaction when he reached normal retirement date, avoided the clear intent and requirement of his retirement plan that the annuities were then to go into pay status, and thereby effectively converted them into savings accounts to be held at interest which accumulated for his benefit. By doing so, he removed them from the statutory category of “payment receivable * * * under a…
2Cases cited7 opinions
- Anderson v. HelveringSupreme Court of the United States · 1940
- United States v. Jefferson Electric Manufacturing Co.Supreme Court of the United States · 1934
- Powell v. RothensiesCourt of Appeals for the Third Circuit · 1950
- Russell v. CommissionerUnited States Tax Court · 1966
- The Northern Trust Company as Trustee Under Agreement No. 25,304 With Walter S. Carr Dated January 1, 1959 v. United StatesCourt of Appeals for the Seventh Circuit · 1968
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