Lester v. Commissioner
United States Tax Court
Decedent was required under a decree of divorce to pay $ 1,000 monthly to his former wife until she died or until the expiration of 10 years and 10 months. He made regular payments to her during his life but died with 111 unmatured installments remaining. The provisions of the decree admittedly bound the estate. The estate claimed a deduction of $ 111,000 on the estate tax return.
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Decedent was required under a decree of divorce to pay $ 1,000 monthly to his former wife until she died or until the expiration of 10 years and 10 months. He made regular payments to her during his life but died with 111 unmatured installments remaining. The provisions of the decree admittedly bound the estate. The estate claimed a deduction of $ 111,000 on the estate tax return. The executor continued the payments for 10 months and then settled the entire claim, with the approval of the court which granted the divorce, by substituting a commercial annuity policy. The settlement effectuated…
1Opinion of the Court
OPINION
Tietjnns, Judge:
All of the facts are stipulated and this case was submitted under Rule 30, Tax Court Rules of Practice. The Commissioner determined a deficiency of $6,490.35 in the Federal estate tax of the Estate of Donald E. Lester. Petitioner’s Federal estate tax return (Form 706) was filed with the district director of internal revenue for the New Orleans district, New Orleans, La., on April 28, 1964. Due to the concession of petitioner that the value of a life insurance policy issued by Aetna Life Insurance Co. which is includable in the estate is $22,000, the amount of the…
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