Kieferdorf v. Commissioner of Internal Revenue

GARRECHT, Circuit Judge.

The question here is whether petitioner is liable as a transferee under Section 311 of the Internal Revenue Code, Title 26, U.S.C.A. Int.Rev.Code, § 311, for income taxes due from the decedent whose estate is insolvent by reason of petitioner’s receipt of insurance proceeds under a California statute authorizing the probate court to set over to the surviving spouse all or any part of the property of the decedent “exempt from execution”. The insurance proceeds were payable to the estate and were property “exempt from execution” under California law.

The facts were found…