TAXATION-FEDERAL ESTATE TAX-TAXABILITY OF JOINT AND SURVIVOR ANNUITY PAID PURSUANT TO PENSION PLAN

Authors

Lawrence M. De Vore S.Ed., University of Michigan Law School

Abstract

Under a pension and retirement plan, decedent had the option of receiving a pension for life or a smaller pension while both he and his wife lived, with two-thirds of such reduced pension payable to the survivor for life. On decedent's normal retirement date he chose the latter. Decedent did not retire but continued working until his death. His wife was then entitled to receive a monthly income for life under the pension plan. The Commissioner of Internal Revenue determined that the value of the wife's annuity should be included in the decedent's gross estate. Plaintiff instituted action for refund of the tax attributable to the annuity. Held, for the plaintiff. The value of the annuity is not includible in decedent's gross estate under section 811(c)(1)(B) of the Internal Revenue Code because the decedent's interest did not result from the rights transferred to the wife by his election. Herrick v. United States, (D.C. N.Y. 1952) 108 F. Supp. 20.

Recommended Citation

Lawrence M. De Vore S.Ed., TAXATION-FEDERAL ESTATE TAX-TAXABILITY OF JOINT AND SURVIVOR ANNUITY PAID PURSUANT TO PENSION PLAN, 51 Mich. L. Rev. 1246 (1953).
Available at: https://repository.law.umich.edu/mlr/vol51/iss8/14