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
Estate of John Smith, Virginia Smith, Executrix, Petitioner v. Commissioner of Internal Revenue, Respondent
Estate of Smith v. Commissioner
Docket No. 6546-77
United States Tax Court
73 T.C. 307; 1979 U.S. Tax Ct. LEXIS 20;
November 21, 1979, Filed
Decision will be entered under Rule 155.
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…
2Cases cited17 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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