Schwarz v. United States

J. SHELLY WRIGHT, District Judge.

The principal basis for this suit for a refund of estate taxes is the asserted unconstitutionality of Sec. 811(g)(2) (A) of the Internal Revenue Code of 1939 1 when applied to life insurance policies originally taken out by decedent but assigned by him to the beneficiaries five years before his death. This Court, denying the claim of unconstitutionality, holds that that proportion of the proceeds of the policies which the premiums paid by him bear to the total premiums paid is includable, for estate tax purposes, in the gross estate of the decedent.

The…