In Re Leuthold's Estate

Grace H. Leuthold died testate December 22, 1952. Her husband and her son were appointed, and qualified, as executors of her estate. The state attempted to impose an inheritance tax upon one half of the cash surrender value of six life insurance policies upon the life of her surviving spouse. The beneficiaries designated in the several policies at the time of Mrs. Leuthold’s death were either the son, daughter, or the surviving spouse’s estate. All premiums on the policies which became due prior to her death were paid out of community funds. The state asserted that her death was a taxable…