Estate of Smead v. Commissioner
United States Tax Court
Decedent was insured under a group life insurance policy provided by his employer. The only right decedent had with respect to the policy was the right to convert his group life insurance into an individual life insurance policy upon termination of his employment.
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Decedent was insured under a group life insurance policy provided by his employer. The only right decedent had with respect to the policy was the right to convert his group life insurance into an individual life insurance policy upon termination of his employment. Held, the conversion privilege, which is contingent upon termination of employment, is not an incident of ownership within the meaning of sec. 2042(2), I.R.C. 1954, so the proceeds of the life insurance policy are not includable in his gross estate.
1Opinion of the Court
Estate of James Smead, Deceased, John P. O'Hara, Jr., Executor, Petitioner v. Commissioner of Internal Revenue, Respondent
Estate of Smead v. Commissioner
Docket No. 2510-79
United States Tax Court
78 T.C. 43; 1982 U.S. Tax Ct. LEXIS 150; 78 T.C. No. 3;
January 13, 1982, Filed
Decision will be entered under Rule 155.
Decedent was insured under a group life insurance policy provided by his employer. The only right decedent had with respect to the policy was the right to convert his group life insurance into an individual life insurance policy upon termination of his employment. Held, the conversion…
2Cases cited17 opinions
- Stubbs, Overbeck & Associates, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- Estate of Lang v. CommissionerUnited States Tax Court · 1975
- M. E. Blatt Co. v. United StatesSupreme Court of the United States · 1938
- The Estate of Grace E. Lang, Deceased. Richard E. Lang v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
- Commissioner of Internal Revenue v. TreganowanCourt of Appeals for the Second Circuit · 1950
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