Schwab v. Commissioner

OPINION

M. SMITH, Circuit Judge:

The tax court determined that the “amount actually distributed” 1 when a couple received ownership of two life insurance policies after their employer woúnd down their employees’ benefit trust was “the fair market value of what was actually distributed.” Schwab v. Comm’r, 136 T.C. 120, 131 (2011). It' further held that surrender charges associated with a variable universal life insurance policy may permissibly be 'considered as part of the general inquiry into a policy’s fair market value. Id.' at 134. We agree with the tax court on both déterminations, and we…