Estate of Frank Martin Perry, Sr., Deceased, Michael C. Perry, Whit S. Perry and Robert S. Perry, Co-Executors v. Commissioner of Internal Revenue

WIENER, Circuit Judge:

Respondent-Appellant, Commissioner of Internal Revenue (Commissioner) appeals from an adverse ruling by the United States Tax Court which held that proceeds of insurance on the life of Frank Martin Perry, Sr. (Decedent), paid directly to his grown sons as owners and beneficiaries of two insurance policies, were properly ex-cludable from the estate of Decedent for federal estate tax purposes, even though Decedent had signed the application for the insurance as proposed insured and had paid all premiums thereon. Because of the modifications wrought by the Economic Recovery…