In re the Estate of McNally

This is an appeal by the executor from the pro forma order entered in the tax proceeding. The sole question presented is whether the estate is entitled to an exemption with respect to six life insurance policies on decedent’s life in the amount of $31,977.42.

On October 3, 1962 the decedent transferred to his son the life insurance policies in question. Following decedent’s death on January 2,1964, the net proceeds thereof were paid to decedent’s son as beneficiary. On schedule D of the Federal estate tax return the executor placed no value on said insurance, alleging that the decedent’s son…