Deblois v. Department of the Treasury/Internal Revenue Service

ANDREASEN, Justice.

This case requires us to consider if the exemption of Iowa Code subsection 627.6(6) (1991), relating to life insurance proceeds, applies to taxes collectable under Iowa Code section 422.26. In a declaratory judgment action, the district court ruled life insurance proceeds payable to the surviving spouse are subject to a tax lien if she is jointly and severally hable for the tax, subject to a statutory exemption of $15,000. Upon review we affirm in part, reverse in part, and remand.

I. Background.

On July 28, 1992, Joseph Abert Deblois III (Joseph) died testate, a resident of…