Inheritance Tax on Matured Endowment Policies

Vincent X. Yakowicz,

Deputy Attorney General,

You have requested our opinion with respect to the taxability of matured endowment policies upon the death of the insured.

*171Throughout our opinion we shall use such words as “insurance”, “insurer” and “insured”. This nomenclature is being used for descriptive convenience. The words are used generically and should not be interpreted in their technical sense.

The facts are as follows: Decedent-insured was the owner of a 15-year endowment contract which had matured. Under the terms of the contract, the insured had the rights at maturity to withdraw the…