Pearlman v. Commissioner
United States Tax Court
1. A resident of Pennsylvania, after becoming hopelessly insolvent, designated his wife as first beneficiary in several policies of insurance on his life, in substitution for his executors, administrators, or assigns. At the time of his death the insured was insolvent. Proceedings were then pending involving deficiencies in his income tax for several years. The proceedings were dismissed and the deficiencies were upheld.
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1. A resident of Pennsylvania, after becoming hopelessly insolvent, designated his wife as first beneficiary in several policies of insurance on his life, in substitution for his executors, administrators, or assigns. At the time of his death the insured was insolvent. Proceedings were then pending involving deficiencies in his income tax for several years. The proceedings were dismissed and the deficiencies were upheld. After the death of the insured the insurance companies issued claim settlement certificates in the aggregate amount of more than $ 200,000, under which decedent's widow is…
1Opinion of the Court
OPINION.
Mellott, Judge:
As indicated at the outset, the issue is whether petitioner, under the facts, is liable in equity for the income taxes of her deceased husband. The applicable statute is shown in the margin.4
Although many cases have been decided under the transferee provisions of the statute, this is the first in which the precise question now before us has arisen. Beneficiaries under life insurance policies, however, have been held liable for the estate tax where the tax sought to be collected arose because of the inclusion in gross estate of the proceeds of insurance in excess of…
2Cases cited23 opinions
- Erie Railroad v. TompkinsSupreme Court of the United States · 1938
- Higgins v. SmithSupreme Court of the United States · 1940
- Phillips v. CommissionerSupreme Court of the United States · 1931
- Blair v. CommissionerSupreme Court of the United States · 1937
- Helvering v. StuartSupreme Court of the United States · 1942
18 more not listed; retrieve them via the Exa API.
3Cited by25 opinions
- Ruth Halle Rowen, Ethel F. Halle, and Edward Halle v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1954
- Bales v. CommissionerUnited States Tax Court · 1954
- Tampa & G. C. R. Co. v. CommissionerUnited States Tax Court · 1971
- United States v. Molly G. BessCourt of Appeals for the Third Circuit · 1957
- Cohen v. CommissionerUnited States Tax Court · 1954
20 more not listed; retrieve them via the Exa API.