• Home
  • News
    • Politics & Government
    • Business & Economy
    • Crime / Courts
    • Health / Medicine
  • Sports
    • High School Sports
    • Radio Iowa Poll
  • Affiliates
    • Affiliate Support Page
  • Contact Us
    • Reporters

Radio Iowa

Iowa's Radio News Network

You are here: Home / Crime / Courts / Supreme Court says state can collect estate taxes from insurance polices

Supreme Court says state can collect estate taxes from insurance polices

July 16, 2010 By Dar Danielson

The Iowa Supreme Court has ruled the state Department of Revenue can collect estate taxes from beneficiaries of life insurance policies. The case involved Phillip Tremil, a Harrison County man who died in 1998 and left a life insurance policy with his wife and two minor children as the beneficiaries.

Tremil’s wife chose not to take her interest in the policy and that left just over $516,000 for his two sons. Tremil’s estate owed the state of Iowa around $50,000 in taxes and interest — but the estate had no assets — and the Iowa Department of Revenue went after the money from the insurance policy that had been put into a trust for the two boys.

Attorneys for the boys fought the Revenue Department’s attempt, but lost in district court. The Iowa Court of Appeals however ruled that the insurance policy money was not part of the estate, and not subject to the tax. The Iowa Supreme Court rule the tax law allows the Department of Revenue to interpret the code and the agency’s interpretation may only be overturned if it is “irrational, illogical, or wholly unjustifiable,” and this case does not fit those definitions.

The high court overturned the appeals court ruling and affirmed the district court ruling, allowing the Department of Revenue to collect from the insurance money left to Tremil’s two sons.

Share this:

  • Facebook
  • Twitter

Filed Under: Crime / Courts Tagged With: Insurance

Featured Stories

Testing finds 21 new CWD cases in deer

It may become a crime in Iowa to use fake urine in workplace drug tests

February trending 18 degrees below average temperature

Iowa House Education Committee votes to end tenure at UI, ISU, UNI

Man convicted of two Muscatine County murders dies in prison

TwitterFacebook
Tweets by RadioIowa

Key stretch begins for #9 Iowa

Drake’s Roman Penn lost for the season

Drake’s DeVries named to Naismith watch list

State wrestling opens with limited attendance

Iowa’s Wieskamp is B1G Player of the Week

More Sports

eNews and Updates

Enter your email address:

Delivered by FeedBurner

Archives

Copyright © 2021 · Learfield News & Ag, LLC