First National Bank of Shelby v. Dixon

MARTIN (Robert M.), Judge.

The question before us is: to what extent is the beneficiary of a life insurance policy liable for estate and inheritance taxes where the decedent who purchased the policy retained sufficient incidents of ownership therein to require the inclusion of the policy’s proceeds in the decedent’s gross estate for purposes of taxation? Plaintiff bank, as administrator for decedent’s estate, contends that Jane Greene Dixon, as beneficiary of the life insurance policies in question, should pay the ratable portion of the taxes assessed against the estate by reason of the…