Estate of Carlstrom v. Commissioner
United States Tax Court
Wife of decedent applied for an "employer pay all" split-dollar life insurance policy on decedent's life, specifying herself as owner and beneficiary. After the insurance policy became effective, the insurance company sent a policy amendment to the decedent's employer, CFI, making CFI the owner of said policy. At age 49, and within 3 years of the effective date of said policy, decedent died. At the time of his death, the decedent was the owner of 71 percent of the CFI stock.
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Wife of decedent applied for an "employer pay all" split-dollar life insurance policy on decedent's life, specifying herself as owner and beneficiary. After the insurance policy became effective, the insurance company sent a policy amendment to the decedent's employer, CFI, making CFI the owner of said policy. At age 49, and within 3 years of the effective date of said policy, decedent died. At the time of his death, the decedent was the owner of 71 percent of the CFI stock. Held, under Missouri law the policy amendment was ineffective to transfer ownership of the policy to CFI. Held,…
1Opinion of the Court
Forrester, Judge:
Respondent has determined a deficiency of $14,954.54 in the Federal estate tax of petitioner, subject to the credit for State death taxes paid. The sole issue for decision is whether the gross estate of decedent should include the proceeds of an insurance policy on the life of decedent.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Decedent Howard F. Carlstrom died on March 25, 1975. His widow, Betty J. Carlstrom (hereinafter referred to as Betty), was named executrix of his estate. At the time she filed the petition herein, Betty resided in…
2Cases cited19 opinions
- United States v. WellsSupreme Court of the United States · 1931
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Allen v. Trust Co. of Ga.Supreme Court of the United States · 1946
- Estate of Ford v. CommissionerUnited States Tax Court · 1969
- Bel v. United StatesCourt of Appeals for the Fifth Circuit · 1971
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3Cited by4 opinions
- Estate of Leder v. CommissionerUnited States Tax Court · 1987
- Estate of Benham v. CommissionerUnited States Tax Court · 1983
- Estate of Carlstrom v. CommissionerUnited States Tax Court · 1981
- Estate of Leder v. CommissionerUnited States Tax Court · 1987