Estate of Margrave v. Commissioner
United States Tax Court
Decedent's spouse applied for and owned an insurance policy on the life of the decedent, naming the trustee of a revocable trust created by the decedent as beneficiary. Upon decedent's death, the proceeds were paid to the trustee. Held, decedent did not possess any incident of ownership with respect to such life insurance policy. Held, further, he did not possess a power of appointment over the policy or the proceeds thereof.
1DissentChabot, J.
The majority conclude that the proceeds of the life insurance policy in question are not includable in the value of decedent’s gross estate. I believe that the policy proceeds are includable in the value of decedent’s gross estate under section 2042(1), and so I respectfully dissent.
Section 2042(1) — set out in full in the majority opinion— provides that the value of decedent’s gross estate shall include the value of all property receivable by the executor as insurance under policies on the life of the decedent. There being no question that the proceeds were “insurance under policies on the…
2Cases cited14 opinions
- Helvering v. Le GierseSupreme Court of the United States · 1941
- Mortimer Freedman, Independent Under the Last Will and Testament of Margaret Freeman v. United StatesCourt of Appeals for the Fifth Circuit · 1967
- Bintliff v. United StatesCourt of Appeals for the Fifth Circuit · 1972
- Matthews v. CommissionerUnited States Tax Court · 1944
- Mason v. CommissionerUnited States Board of Tax Appeals · 1941
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