Kirk v. Commissioner
United States Board of Tax Appeals
During the years 1933 and 1934 C. Henderson Supplee took out insurance policies upon his own life, irrevocably naming his wife, Flora D. Supplee, the beneficiary, if living at the date of his death. In each instance his wife paid one-half of the premium. From the date of issuance the wife had the right to surrender the policies and receive the cash surrender value.
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During the years 1933 and 1934 C. Henderson Supplee took out insurance policies upon his own life, irrevocably naming his wife, Flora D. Supplee, the beneficiary, if living at the date of his death. In each instance his wife paid one-half of the premium. From the date of issuance the wife had the right to surrender the policies and receive the cash surrender value. The value of the gifts was reported as one-half of the cancellation value of each policy at the date of issuance. The respondent contends that the value of the gift in each case was one-half of the premium paid. Held, that the…
1Opinion of the Court
OPINION.
Smith :
This proceeding is for the redetermination of deficiencies in gift tax for 1933 and 1934 of $3,650.22 and! $21,988.45, respectively. The petitioners contend that the respondent erred in the determination of deficiencies by not taking as the value! of the gifts one-half of the cancellation value of certain life insurance policies taken out by C. Henderson Supplee in 1933 and 1934 in which, the decedent’s wife, Flora D. Supplee, was irrevocably named as beneficiary, with the right to cancel the policies at any time she saw1 fit.
*903C. Henderson Supplee filed a gift tax return for…
2Cited by3 opinions
- Helvering v. BryanCourt of Appeals for the Fourth Circuit · 1940
- Kirk v. CommissionerUnited States Board of Tax Appeals · 1939
- Supplee v. CommissionerCourt of Appeals for the Third Circuit · 1941