Andrew J. Eberly and Ruthanne E. Eberly - Page 14

                                       - 13 -                                         
          lifetime in accordance with the TIAA-CREF annuity’s requirements.           
          Upon receipt of the dated and signed withdrawal request from                
          decedent, TIAA-CREF’s obligation to distribute the funds became             
          absolute.  See, e.g., Macartney v. Parmenter, 109 F. Supp. 493              
          (D.R.I. 1952); Pac. States Life Ins. Co. v. Bryce, 67 F.2d 710              
          (10th Cir. 1933).  Receipt of decedent’s withdrawal request and             
          actual payment to decedent during his lifetime were not required            
          by the terms of the TIAA-CREF annuity.                                      
               The receipt by TIAA-CREF of the dated and signed withdrawal            
          request from decedent constituted an effective exercise by him of           
          his right to a lump-sum distribution during his lifetime.  The              
          lump-sum distribution from TIAA-CREF was income to decedent and             
          properly includable in his 2000 gross income.  Therefore, we hold           
          that the $150,000 received by petitioner was not a death benefits           
          payment and is not includable in petitioners’ gross income under            
          section 691(a) as IRD.                                                      
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             for petitioners.                         











Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  

Last modified: May 25, 2011