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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.
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