Estate of Coleman v. Commissioner
United States Tax Court
1. Decedent's three children purchased and at all times owned a life insurance policy on her life. Decedent paid all the premiums, a portion of which were concededly in contemplation of death.
Read the full summary
1. Decedent's three children purchased and at all times owned a life insurance policy on her life. Decedent paid all the premiums, a portion of which were concededly in contemplation of death. Held, no portion of the proceeds of the insurance is includable in her estate under sec. 2035, I.R.C. 1954, the amount includable being limited to the premiums paid in contemplation of death. 2. Decedent, as lessor of a lease, expiring in 2057, received a security deposit which was returnable only upon the expiration of the lease and then only if the lessee had performed all of the numerous obligations…
1Dissent
TxetjeNS, /.,
dissenting: I respectfully dissent on the issue of the includability of a portion of the life insurance proceeds in decedent’s estate.
As I see it the problem is really not whether there was a “transfer” in contemplation of death. The taxpayer concedes there was such a transfer, but says it was of money only, i.e., the amount of the premiums paid by decedent. The real question is how to value that transfer. I think it should be valued at what the amounts paid as premiums purchased in the way of insurance protection and not at what was actually paid for that protection.
In essence…
2Cases cited4 opinions
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Liebmann v. HassettCourt of Appeals for the First Circuit · 1945
- Scott v. CommissionerCourt of Appeals for the Ninth Circuit · 1967
- Scott v. CommissionerUnited States Tax Court · 1965