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.
1DissentQuealy, J.
In order to reach this result, the opinion threads its way through a “mine field” of adverse decisions.1 Merely to distinguish those cases does not lead to the opposite conclusion. For that the majority relies on Connecticut Bank & Trust Co. v. United States, 465 F.2d 760 (2d Cir. 1972).
In the Connecticut Bank & Trust Co. case, the “property” sought to be taxed was the proceeds of an action under a wrongful death statute. A claim against a tort-feasor on account of the death of a taxpayer does not arise until the taxpayer dies. On the other hand, a policy of life insurance gives rise to…
2Cases cited15 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Estate of James H. Lumpkin, Jr., Deceased. Christine T. Hamilton v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1973
- Estate of Lumpkin v. CommissionerUnited States Tax Court · 1971
- United States v. The Merchants National Bank of Mobile, as Under the Will of Nettie F. Turner, DeceasedCourt of Appeals for the Fifth Circuit · 1958
- Estate of John J. Connelly, Sr. (Deceased) and Ellen C. King v. United StatesCourt of Appeals for the Third Circuit · 1977
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