United States v. Dorothy B. Truax, Individually and as Administratrix of the Estate of Layton E. Truax

TUTTLE, Circuit Judge.

The sole question here is whether appellee, the named beneficiary and the recipient of the proceeds of an insurance policy on the life of her deceased husband, is liable as a transferee for the husband’s unpaid income taxes in an amount exceeding the cash surrender value of the policy, where the husband died insolvent.

The facts in the record are undisputed. Appellee is the widow and administratrix of Layton E. Truax, who died insolvent on May 11, 1949, owing back income taxes for years ending August 31, 1946, and August 31, 1947, in the amount of $3,485.43 and interest.…