United States v. Manufacturers National Bank of Detroit

The question here is whether Section 811 (g) (2) (A) of the Internal Revenue Code of 1939 is constitutional as applied in this case. That section, the “payment of premiums” provision in the 1939 Code, requires inclusion of insurance proceeds in the gross estate of an insured where the proceeds are receivable by beneficiaries other than the executor but are attributable to premiums paid by the insured. Inclusion is required regardless of whether the insured retained any policy rights. However, if the insured possessed no “incidents of ownership” after January 10, 1941, the premiums paid by him…