Proutt's Estate v. Commissioner of Internal Revenue

MARTIN, Circuit Judge.

On this review of a deficiency estate tax assessment, upheld by the Board of Tax Appeals, we must decide whether $40,000 of a total amount of $50,249.08 accruing from eight policies of insurance taken out by a decedent upon his own life is exempt from inclusion in his gross estate under subsection (g) of Section 302 of the Revenue Act of 1926, as amended, 44 Stat. 9, U.S.C.A. Title 26, § 411, 26 U.S.C.A. Int. Rev. Code, § 811(g). The policies were payablé to his executor under the terms of the residuary clause of his will, but were devised and bequeathed to the executor…