Estate of Clay v. Commissioner
United States Tax Court
Wife purchased insurance on decedent husband's life, paying premiums with funds withdrawn from their joint checking account. Held: In absence of agency relationship, payment of insurance premiums by one joint tenant does not constitute payment by the nonwithdrawing tenant. Therefore, decedent does not have a transferable interest in the policy within the purview of sec. 2035, I.R.C. 1954.
1Opinion of the Court
WHITAKER, Judge:
Respondent determined a deficiency of $18,712 in petitioner’s Federal estate tax. After concessions, the sole issue for decision is whether petitioner’s gross estate includes a pro rata portion of proceeds received from an insurance policy on the life of Lee J. Clay, deceased, where the policy premiums were paid from a joint checking account funded by decedent and his wife.
FINDINGS OF FACT
Some of the facts have been stipulated, and are found accordingly. The stipulation of facts and attached exhibits are incorporated herein by this reference.
Decedent and Mary Louise Clay…
2Cases cited9 opinions
- Aquilino v. United StatesSupreme Court of the United States · 1960
- Morgan v. CommissionerSupreme Court of the United States · 1940
- Bel v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- Vesey v. VeseySupreme Court of Minnesota · 1952
- The Detroit Bank & Trust Company, of the Estate of Fred W. Ritter, Deceased v. United StatesCourt of Appeals for the Sixth Circuit · 1972
4 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- American National Bank and Trust Company of Rockford, Illinois, as of the Estate of Bruce F. Olson, Deceased v. United StatesCourt of Appeals for the Seventh Circuit · 1987
- Estate of Leder v. CommissionerUnited States Tax Court · 1987
- Estate of Joan Schnack, Deceased, and William D. Schnack v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1988
- Estate of Headrick v. Comm'rUnited States Tax Court · 1989
- ESTATE OF SCHNACK v. COMMISSIONERUnited States Tax Court · 1986
3 more not listed; retrieve them via the Exa API.