Fidelity-Philadelphia Trust Co. v. Smith

McLAUGHLIN, Circuit Judge.

The question here is whether a death payment under a contract with a life insurance company is includible in the gross estate of the decedent under Section 811(c) (1) (B) of the Internal Revenue Code of 1939, as amended, 26 U.S.C. 1952 ed. § 811.1

*691In 1934, decedent, aged seventy-six, purchased three single premium insuranee policies on her life. As a condition for the issuance of each policy the insurers required decedent to purchase an annuity in such amount that the sum of the premiums for death payment and annuity would equal approximately 13/(oths of the face…