Fidelity-Philadelphia Trust Company v. Smith/Dissent Burton

Mr. Justice BURTON, with whom Mr. Justice BLACK and Mr. Justice CLARK join, dissenting.

For the reasons stated by the court below, 3 Cir., 241 F.2d 690, and also in Conway v. Glenn, 6 Cir., 193 F.2d 965, and Burr v. Commissioner, 2 Cir., 156 F.2d 871, it seems to me that, for federal estate tax purposes, this case is indistinguishable from one in which a settlor places a sum in trust under such terms that he shall receive the income from it for life, and the principal shall be payable to designated beneficiaries upon his death. As the principal, in that event, would be includable in the settlor's estate for federal estate tax purposes, so here the proceeds of the insurance policies should be included in this decedent's estate. Accordingly, I would affirm the judgment of the Court of Appeals.