View opinion on Lexis AdvanceThe crucial issue to be decided under § 2033 is whether or not the value of an action for wrongful death is "property . . . of the decedent at the time of his death."
Taxation of Estates and Gifts
Conn. Bank & Trust Co. v. United States
United States Court of Appeals for the Second Circuit, 1972
Facts:
Decedent was struck and killed by a semi-truck. His executor commenced wrongful death actions which were settled for $320,000. This money was held for distribution to his beneficiaries not included in the estate for estate tax purposes. However, the Commissioner said it should have been.
Procedural History:
District court held that the wrongful death recoveries were property held by decedents at the time of their deaths, and was therefore part of the estate to be taxed.
Issue:
Page 762
Reasoning:
Simple logic mandates the conclusion that an action for wrongful death cannot exist until a decedent has died, at which point, he is no longer a person capable of owning any property interests.
Rule/Holding:
Wrongful death proceeds are not property of the decedent at the time of his death.
Judgment:
Reversed and remanded.