United States District Court, Northern District of Illinois, E.D
May 29, 1956
UNITED STATES OF AMERICA, PLAINTIFF,
NELLE A. HOPER ET AL., DEFENDANTS.
The opinion of the court was delivered by: Perry, District Judge.
This Court has carefully examined and considered the pleadings,
the evidence, the arguments and the briefs of counsel. It is the
view of this Court that it cannot again inquire into the
decedent's liability for the taxes.
As to the Government's contention that the lien has now
attached to the proceeds of the insurance policies to the extent
of their cash surrender value as of the date of the taxpayer's
death, this Court, with due respect to eminent authority to the
contrary, does not agree with the theory. If, upon the death of
the assured, the cash surrender value of the insurance policy
merges into the proceeds, it appears to this Court that the
property interest which supported the Government's tax lien prior
to death has now disappeared. In this case, the decedent up to
his death failed to exercise in any manner whatsoever his
contractual right under the insurance contract to the cash
surrender value; he performed no conditions precedent to the
proper exercise of that right as required by the contract. This
right died with the decedent and thereafter proceeds of the
insurance policy became payable under the contract to the
designated beneficiaries without being subject to the Government
The defendants will present appropriate findings of fact and
conclusions of law and an appropriate judgment order in open
court on June 6, 1956 at 10:00 A.M.
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