Estate of Clarence H. Loeb, Deceased, Bessie Robinson Loeb, Isidore Robinson and Harry Robinson, Executors v. Commissioner of Internal Revenue

The decedent died on August 25, 1951. His wife Bessie and three sons survived him. In April 1941 Bessie took out three insurance policies on the life of her husband. The policies named her as beneficiary and the proceeds thereof were paid to her after her husband’s death. He never had any control of the policies or any incidents of ownership. All premiums on the policies were paid by the wife by checks drawn on her personal checking account. Most of the funds deposited in her checking account were gifts from her husband but she testified she could have used the gifts for what ever purpose she…