Estate of Towle v. Commissioner
United States Tax Court
The decedent possessed a general power of appointment exercisable with the consent of a trustee over the proceeds of certain insurance settlement contracts.
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The decedent possessed a general power of appointment exercisable with the consent of a trustee over the proceeds of certain insurance settlement contracts. Held: The trustee's consent was not limited by a substantial adverse interest in the property, subject to the power, within the meaning of sec. 2041(b)(1)(C)(ii), I.R.C. 1954, nor was the trustee's discretion limited by an ascertainable standard within the meaning of sec. 2041(b)(1)(A), I.R.C. 1954. Consequently, the proceeds are includable in the decedent's gross estate.
1Opinion of the Court
opinion
Tannenwald, Judge:
Respondent has determined a deficiency in petitioner’s estate tax of $27,920.45. The sole issue for our determination is whether the proceeds of certain insurance settlement contracts over which the decedent possessed a power of appointment with the consent of a trustee are excludable from her gross estate.
All of the facts are stipulated and are found accordingly.
Petitioner, the executor of the Estate of Janice McNear Towle, maintained its principal place of business in Chicago, Ill., at the time of filing the petition herein. The estate tax return was filed with the…
2Cases cited18 opinions
- Reinecke v. SmithSupreme Court of the United States · 1933
- Commissioner of Internal Revenue v. ProutyCourt of Appeals for the First Circuit · 1940
- Strite v. McGinnesCourt of Appeals for the Third Circuit · 1964
- Welch v. TerhuneCourt of Appeals for the First Circuit · 1942
- Sender v. MontoyaNew Mexico Supreme Court · 1963
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3Cited by7 opinions
- Estate of Gilchrist v. CommissionerUnited States Tax Court · 1977
- Sharpe v. United StatesDistrict Court, E.D. Virginia · 1984
- Estate of Gilchrist v. CommissionerUnited States Tax Court · 1977
- Estate of Klafter v. CommissionerUnited States Tax Court · 1973
- Estate of Maxant v. CommissionerUnited States Tax Court · 1980
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