9th Cir.
11-71957

The court of appeals affirmed a decision of the Tax Court. The court held that the amount of a taxpayer’s variable universal life insurance policy that was statutorily “actually distributed” to him was the fair market value of what was actually distributed, not the full stated policy value. Further, the court held, surrender charges associated with that policy could be taken into consideration as part of the general inquiry into the policy’s taxable fair market value.