**OFFICE OF**  **THE** AlTORNEY **GENERAL OF**  **TEXAS**
**AUSTIN**

1940, bwbiah on the queatlo

orthe l atata of

**qurrtion now**  **ariaor** whether **or not**  the l

xooutor is rornot lareporting only a ae-h4lf

of the

U16RRt*a
She pooeodr

of lltelaaunaoe p oliolor were mrb brublr under the blur Inhoritaaoo Tsx Lawbr th **?Oorl~4~zth** I*girl~tlu* &l lW9. Attlole 9ll9 OS the Roriroa ClVll st4tRt.l. a0 a0 amuld, now roadl, Lo part **40 iOl.lOWS**  **J Eonoz=blo**  **0.0%. II.**  **BhopprU, paa.**  **8**



### aAll propartr within the **jurl8dlotloa o** **’ ?**  thlr mato, real 

### or glr8ona1, oorponto 

### or lnoorporrto, mad Oar latorert thoroln, laoludlzu 

### ropartr

parrlag wdar l & taut l



### xrrolrsd br tha r aonl power of l ppo *codoat br ~111, laoludlag thr **p0080a8** of llfo larurrao~ 

## to
the rrtent 

### of the amouat 

### noelnblo br the waoutor or rdminlrtrrtor a8 lnrurum andot polloiertaken out br the drordoat upon hla owa llfo,md to th8 l rtoat of the 0x0088 over 

### Party ‘Ihoumnd Dollan ($40,000) of the amount rooriveblr by all 

### other kneflohrlar aa larura80 w&or polloirr**taken out**  **by** the **drordoat** open hi8 own lit., whothrr brloaglcy to lnhnbltaatr

### of thlr Stat0 or to prrow 

### who are not lnhabltaatr, regardlo of whather ruoh property 18 loo&O6 within or without tklr star, whioh 8hall pa88 l

brolutolyor in trurt by will or by tho law8 of doroentor dl8trlbutlonof thlr
**or a~**  other **8kt0, or**  **by** 

### a00d, grant, **8810,** or @rt DDE 

### or 

### tnt0lldrd to uk8 *mot in pO88orrloaor l

ajoymrnt

after th8 drath or th, **grantor** or doaor, ahall, upon prrlm to or 

### for the u80 oi 8nj person, oorpormtlon, or l8- roolatloa, be **rubJ8ot** to a tax for the benorlt of the strte*e General Rennw mad, la aocordano, with the iollowingola8slfloOtlon

. . . .a

It mar bo l arllr 8a8n from th8 prooroding wtiolb that tha tax 1s barma oa tb amountor propert that pS88M. A that only p&rratlTthe l **xooutor** 18 

### ouklag **tin** 

### oontentlon b ,661.a ot llfo inrurm.ioo proorrdapsrod at the dorth of the dooedent. Itrldeatly **the executor**  18 **tak** ing the porltloa that th@ 0th8r hali did not purr at th bath of d80Oa8te**beoaurr** the 8~ ~08 tha rir0.8 halt or the oommunltfproperty due to tha hot t&t the prualtana oa tho poll0108 he& b8rn pal6 

### out of oomunlt~ iundr. Oa the other haad, ii the rntlro prooooti prrrard

to **tha** banrilolar

t99,SSt.M **of lnrurlnor**  *I l a,bparato property Of the horbandmad aot **~8** Oomialt~ 

### pro 8pou880, th8a tha l x~outor8~ooatontloa E rty of both thlr rarpeot murt b0 **0v0rti8a** rad the **entin** larount **or insuraaor**  **pm ored**  would **bo 8ubjrot**  to th8 **hxaa** Inharltanoe **RX.** 8tatrd la anotherwant, if the total proooedaof the polloler 80 to thr bwwlolarler named thereinnetrubjeottommnblr OOOr(@ lL Shapmrd, pqo 8

8ar lloa or olrla ot th8 wlto, thrn moh h8t. ~88.6 rt the death of Ueordontand our **mu8** Iah8rltano*mx. total **pr0000b0** we taxable **under**

It a8 l -11 ratthd ?Uh Of 18w in thh Stat. thbt 

### wharo aa **laaunaoo** poll07 la taken out oa the life **or 001**  ot tha **8~0~808,** rt the drath o? tha perroa 80 lawn& tha proOaed8 of 8uOhpolloy bolou to tha beaotlolrry anamd therola, won though tho pronlum8 

### on th8 polioyw8ro *id with 

## ooamoaitf flllld8,

**ThiS Nh**  **WI8** 8anoUao86 by th# **Su?rM8** 

## OoWt

**Of T,#S**  in thr 0880 Ot X@rtiA T* &!OAll18tSr, et al, 6s 8. w. et4. Th8 oourt ia 8a opinionwrlttra br fU8tiOO BrOm 8tat.d l# tOiiOW8~

-It 18 oont,ndodby the **brt@ndMt@** in or**ror** the tin **hUSb#lrd** oould not appropr1at.e the OOmmUnit)r **iUlld8 to**  hi8 Own U8. 1n th8 puraham Of thir OOntrsOtwithout tho OOASOAt O? hi8 Wit@: but **OUT Statuta**  **S~Oiall~ prOtid88**  t.hat the hurbaad Shall hrv0 the 8018 rbht O? ooatrol or the ooaunualt~ property, and it ha8 bean unlroral~hold that luah oontrol onmot be int~ertrrrd

wlth ~11.88 it 18 8X8~Oi8~d in **fraud of**  the **ri@t8 Of**  the Wl?O. FM. St. Art. g9be~ Strmlar 1. Cm, 15 mx. glb. Wo 800 DO **ground tn**  the **?aOt8 O?**  thi8 **dll88** to impraSh the action of the hU8b-d a8 trrudulbattOwar hi8 ti?Or Th8 right to t& proaootla of the polloy,whether upen thr li?. o? tho wit. la favor ot the hU@- band, or upoa the llfa 0r the buSband la favor Of th. WirO, ~##t# UQOatha **8USl8** PrinOiple,whloh **18 t&t**  **th# prOOwa8**  **Of** the **WllOy bOlO=**  **t0** th prroa naaed **a9** payee, rad **lt** beOO&OS roxmrty upoa thr 0ontlnSenoyo? the aaath or t **1**0 **insured** ill th8 ii?Otiar@

Of rho &f4y,O. **m#rOfOre, a8**  it **oould** not lmoonmtho property 

## oftha husband or the **WiiS** during the lltotlaeof both of them, it OMaOt be hold to be a0mawit.y QrOpertY, ud **18** thareror0 tha rrparatrpropstir 0r thr one to whoc it **18** mad. payable.'

**Thl8** rule of law Laid dowa br **tha 8UprOa8**  **Court -8**  rg8la l

nnowo.4

by **th8** Baa **Antonio CO-t**  **O? CiTil**  **Ap- &Ml@**  **la** the **0880 O?**  **fOn88 1.**  **JOAM, 146**  **9. W.**  **265. Tbr**  **COUrt Stat.6**  **88 fO11OW8;** aoaorable Ooorge g. Sheppard,page 4

-our Suprrmo court, la the 0880 **0s** Kartin v. YoAlll8trr,ha8 held that when lanuranae 

### 18 takrn upon the **iire** 0r tha wlfr, **payablr to**  the haband, and pmnluni8pnld **out of**  th8 oom- #unity fUA68, thr jWOfJWd8 of the polloy beoome the rrparato proportr of tha hwbrsd. **Thr oourt**  Stated that it 8RW Do @‘ound IA thr ?&OtS of the oar0 to lapoaoh the l ation 0i **the** hU#biUJd 

### a8 **rnuaulsat** toward8 hi8 tifr, and **announord** the dootrlne **that,** 80 the prooasaaor 

### a plloy 

### upon tho iire or thr hu#band or wire aould not booomo thr Fropertyof l lthor during the llretimeof both of them, It oannot be hold to bo ooziaunlty property,and **18** thorrtorathe #~~lWt# property Of th8 On0 to whm it **18** pbyRbl8.”

Tha lulr oi law whloh prooludrathe wlro from SollOWlngthe prOOar 0i the ln8uranoepolloy and recover**ing** rgainrt tha **sarm baaaus8**  oonitzunlty ?uncls were expen@ad la the payzaentr of the 

### pronluma was announoodby the Toxarkuia Court of Olrll Appeals in the oaso or l?orthwostorn Utual Llf8 Ineuranoo Ooqany v. Whit88rllo,18@ s. W. 22. **Thr court**  **8tataa a8**  **fOllOWOJ**

"In Rowlettv. Xitohell, **52 Tox.**  **Clr.** App. **589,** 114 S. W. 845, lt wad hold that, la the abaono8,

### aa waa the aaa8 bore, or **rrsud** on the prt **Of** the hurband, the **w1t0** aannot SOllOw and rooovor oommualtyfIJIId@ 0xpnd0a by him la premiuma on aa lnaur.;.nco polloy on hi8 iif8 for th8 bwmrit 0s other per8on8. It **18** plain, therorore, t&t Carrlo 8. shook ~a8 not l ntitloa to reo ovor of lalntltfin error booaua8oonolunlty runds were US. x by J. 0. **Shook** berm 

### @he was dlrorcad fro;; him la paying pralumr **due** on the polloy.*

Thr cO1!~ib8iOa **0s** Apmalr **0s** 

### Taxar a?:lrmed the OaSO Of Whit880~1.1. tiorthwrater'n Yutual Llfr Insurance caqany in 221 8. w. 595. **ma CmMt**  l **tatoa** the **S&X** rule of law t&t war rnnounordby the Ccat o? **Civil Appeal8**  la the following laoguagrl

*The use of aomraunlty fund8 in plpmnt 0s pr8nAuaufor lnrurnaorupoa tha iit0 or on* **890u80** la rator 0s the othrr 4008 aot,8onorablr oaorgr R. Shrppara,page 5

in thr

l **b8enoo** 0s mud, oreatr la the oopcun- ',~~dtha

rl2ht to rol&burrownt for th8 fUAd8 80

W. di4, Yartln v. YaAlllrtrr,94 'hx. 869, 63 6. 85 L. 8. **A.** 585.

. ."
fha rule oflaw l nnounood in those other aasoa +a# reaently **StatOd** by the **Mrt** Worth **Court** or ClvllApT ala b thr oaao or Rln v. IMa, 98 8. **1.** (24) 1226, writ 

### of error dl8rl8rrd **by** the **Buyrtmir** Oourt). **Tho Court**  rtakd **418**

fOilOW81 *Vo bellero it 

### clear that thr liio in@Uran00 p01101~8 that were made payablr to the **detradaat~8 ortat**  **were Jilr**  **reparato property,**  ia whloh the ommunlty l 8tet8 oould hare no lntorert,llther legal or egultablm. Kartin V. XOAll:St~r, 94 Tw. 569, 53 8. U. 524, 56 L. Rd A. 5851 Jonor V. Jones (Srx.Clr. App.) 146 8. W. 265. 

### *In whltor~llrf. NorthwesternIiUtUal Ll:o Ina. Co. (nx. Corn. **APR.)** Ml 9. 1. 695, 575, it WaS 8pOifiO8iay **hid** that ‘th@ **U88** Of aO?finunlty fund8 la payment 0s prrmiuni8 for insuranor ugcm the iire 0s one rpousr in favor or the other **do.8** not, in the ab8onor 0s fraud, orente la tho comunlty the right to relsburrementfor tho fund8 **80 U8ed.** **’** And furthorr *R@O0ver7**upon** th8 rertaiU:Ug **ground,** aaml7, that th8 OaSh **8Ur** maeor value or the pollayat the date of the ailOrO8 **vb8** OOmIaun~ty pOparty, a One-half intorrat in uhloh **-8** doorood la the Wl?O, 18 p8- oludrd 

### uadrr thr deol8lonIn Batoh v. Eatoh (35 Tax. Cit. **App.** 373, 80 5. W. 4111, in whla'. a writ or arror war **donird. 
27 w?17

** Of** **OOnOiU8iOA, it**  **18 a**  **WOii** S~ttitId **rti8** 0s law 0s th18 Btatr that in 

### a oasr auah a8 you pn8ent ln your **Inquiry th8**  **proare&** 0s thr **1~8Ul%llO~** poll07 on th8 lit0 0s the iaOOa8.d rpouse are payable to tho bonoflola~ -a thonla in@ from any olalic **that** tha **runlr1ag apour**  might hare agalnrt thr **8a1ra due**  to the faot that the pn- &h&8 war. 9eld out Of OOmiunity **fund@.** ThiS bedI& tXW the l ntlr8 (99JS2.02 of ll?a **in8UrtXlC6 ptoOoed8**  **p88& to**  thr brnorlclazyon tho death or dooodentand the ontlre

### 301

gonorablr Oeorge H. Sbopprd, p&o 6

ai~ouat or lire lalruranoe proceed8 80ula tbereron b rubjoot to tbo tax i~pored tbereoa by Art1010 7117, 8upra.

me rorult bore rnnouaord hoverer, rould or oourm be rubjeot to tb8 $40,000 **deiuotlon** ot inrururoa proaeedr rllowed wader the kmB or 8UOh Artiol**