- 23 -
Commissioner, 90 F.2d 14, 16 (9th Cir. 1937), affg. 31 B.T.A. 962
(1934) (joint and survivorship tenancy).14
Similarly, funds deposited in joint and survivorship bank
accounts, title to which passes to the survivor under State law,
while included in a decedent’s gross estate for Federal transfer
tax purposes, sec. 2040; sec. 20.2040-1(b), Estate Tax Regs.,
pass outside the subchapter J estate because the funds are not
subject to estate administration. Petersen v. Commissioner,
supra. Proceeds of life insurance policies, sec. 101(a); sec.
1.101-1(a), Income Tax Regs., Totten trusts, or savings bank
account trusts, property held in revocable trusts that terminate
at death whose corpus is transferred to named beneficiaries, and
property held in irrevocable trusts over which decedent retained
a life interest are other instances of property includable in a
decedent’s gross estate for estate tax purposes, see secs. 2036
(transfers with retained life estates); 2037 (transfers taking
effect at death); 2038 (revocable transfers); 2042 (proceeds of
life insurance), none of the payments or distributions of which
are included in section 661 and 662 distributions. See Zaritsky
14 Citing Petersen v. Commissioner, 35 T.C. 962 (1961), the
Commissioner later published Rev. Rul. 62-116, 1962-2 C.B. 207,
208, under which the exclusion of income derived from property
from the subchapter J estate was based upon whether the property
was subject to estate administration and possession by the estate
administrator. See also Ferguson et al., supra secs. 1.3.2.2-1
to 1.3.2.3, at 1:22-23.
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