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distinguished from property settlements and to prevent
the deduction of large, one-time lump-sum property
settlements.
* * * * * * *
In order to prevent the deduction of amounts which
are in effect transfers of property unrelated to the
support needs of the recipient, the bill provides that
a payment qualifies as alimony only if the payor (or
any person making a payment on behalf of the payor) has
no liability to make any such payment for any period
following the death of the payee spouse. * * *
H. Rept. 98-432, Part 2, 1495-1496 (1984); see Webb v.
Commissioner, supra.
The same conclusion reached in Webb v. Commissioner, supra,
has been reached in Sroufe v. Commissioner, T.C. Memo. 1995-256,
Heffron v. Commissioner, T.C. Memo. 1995-253, and Hoover v.
Commissioner, T.C. Memo. 1995-183.
Here, the agreement is clear that the payments to
petitioner's former wife would continue after the death of either
party to the settlement agreement. In fact, petitioner's
testimony shows that he understood that the payments were to
continue beyond the death of the payee spouse. Petitioner
testified:
THE COURT: Well, you read [the settlement agreement],
didn't you?
THE WITNESS: I read it, but I don't--didn't know what it
meant. They told me--my lawyers said, "This is what
we've agreed to; sign it," so I signed it.
THE COURT: So--
THE WITNESS: I was more concerned with the numbers than the
fine print.
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