Estate of Perl v. Commissioner
United States Tax Court
The decedent's employer purchased a life insurance and disability benefits contract for the decedent. The decedent died while in active service, and the insurance proceeds were paid to his designated beneficiaries. Held, the value of the insurance proceeds is includable in the decedent's gross estate pursuant to sec. 2042(2), I.R.C. 1954, because the decedent possessed an incident of ownership.
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The decedent's employer purchased a life insurance and disability benefits contract for the decedent. The decedent died while in active service, and the insurance proceeds were paid to his designated beneficiaries. Held, the value of the insurance proceeds is includable in the decedent's gross estate pursuant to sec. 2042(2), I.R.C. 1954, because the decedent possessed an incident of ownership. Held, further, the value of the insurance proceeds is not excluded from the decedent's gross estate pursuant to sec. 2039(c), I.R.C. 1954, because they were not part of a pension plan nor payable under…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined a deficiency of $20,077.06 in petitioner’s Federal estate taxes. Concessions having been made by petitioner, the issue remaining is whether the proceeds of an insurance policy purchased by the decedent’s employer as part of an employee benefits program are includa-ble in the decedent’s gross estate.
All the facts of this case were stipulated.1 The stipulation of facts and attached exhibits are incorporated herein by this reference.
Petitioner is the Estate of William Perl, deceased, represented by its executors, Sidney Finkel and Helen W. Finkel.…
2Cases cited9 opinions
- Helvering v. Le GierseSupreme Court of the United States · 1941
- Commissioner v. Estate of NoelSupreme Court of the United States · 1965
- Fusz v. CommissionerUnited States Tax Court · 1966
- Estate of J. William Bahen, Deceased, Kathleen Privett Bahen, Sole v. The United StatesUnited States Court of Claims · 1962
- Mascot Oil Co. v. United StatesSupreme Court of the United States · 1931
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3Cited by3 opinions
- Estate of Bates v. Comm'rUnited States Tax Court · 2012
- Estate of Henry v. CommissionerUnited States Tax Court · 1987
- Estate of Perl v. CommissionerUnited States Tax Court · 1981