OFFICE OF THE AlTORNEY GENERAL OF TEXAS 

AUSTIN 

1940, bwbiah 

on the queatlo 

or the l atata of 

qurrtion now ariaor whether or not 

the l xooutor is rornot la r epor tinog nly 

a a e-h 4olf f the U16RRt*a 

She poo eo dr o f llte laaunaoe p o lio lor wer e 

mrb brublr under the blur Inhoritaaoo Tsx Law br 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 wda r 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 

polloier taken 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 brolutoly or in trurt by will or 

by tho law8 of doroent or dl8trlbutlon of thlr 

or a~ other 8kt0, or by a00d, grant, 8810, 

or @rt DDE or tnt0lldrd to uk8 *mot in 

pO88orrloa or l a jo ymafter r nt th8 drath or th, 

grantor or doaor, ahall, upon prrlm to or 

for the u80 oi 8nj person, oorpormtlon, or l 8- 

roolatloa, be rubJ8ot to a tax for the benorlt 

of the strte*e General Rennw mad, la aocordano, with the iollowing ola8slfloOtlon . . . .a 

It ma r bo l arllr 8a8n from th8 prooroding wtiolb that tha tax 1s barma oa tb amount or propert that 

pS88M. A 

that only 

p&rratlT the l xooutor 18 ouklag tin oontentlon 

b ,661.a ot llfo inrurm.ioo proorrda psrod at 

the dorth of the dooedent. Itrldeatly the executor 18 taking the porltloa that th@ 0th8r hali did not purr at th 

bath of d80Oa8te beoaurr the 8~ ~08 tha rir0.8 halt or 

the oommunltf property 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 t 

99,SSt.M of lnrurlnor 

*I l a,bparato property 

Of the horband mad aot ~8 Oomialt~ pro 

8pou880, th8a th a lx~outor8~ooatontloa E 

rty of both 

thlr rarpeot 

murt b0 0v0rti8a rad the entin larount or insuraaor pmored would bo 8ubjrot to th8 hxaa Inharltanoe RX. 

8tatrd la another want, if the total proooeda of the polloler 80 to thr bwwlolarler named therein netrubjeot to 
mmnblr OOOr(@ lL Shapmrd, pqo 8 

8ar lloa or olrla ot th8 wlto, thrn moh 

h8t. ~88.6 rt the death of Ueordont and 

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 8uOh polloy bolou to tha beaotlolrry 

anamd therola, won though tho pronlum8 on th8 polioy w8ro 

*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 opinion wrlttra br 

fU8tiOO BrOm 8tat.d l # tOiiOW8~ 

-It 18 oont,ndod by the brt@ndMt@ in orror the tin hUSb#lrd oould not appropr1at.e the 

OOmmUnit)r iUlld8 to hi8 Own U8. 1n th8 puraham 

Of thir OOntrsOt without 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 l uah 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 trrudulbat tOwar 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# UQOa tha 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 0ontlnSenoy o? the aaath or t 1 0 insured 

ill th8 ii?Otiar@ Of rho &f4y,O. m#rOfOre, a8 it 

oould not lmoonm tho property of tha husband or 

the WiiS during the lltotlae of both of them, it 

OMaOt be hold to be a0mawit.y QrOpertY, ud 18 

thareror0 tha rrparatr propstir 0r thr one to 

whoc it 18 mad. payable.' 

Thl8 rule of law Laid dowa br tha 8UprOa8 Court 

-8 rg8la l nno wo .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 pmnluni8 pnld 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 prooasaa or a plloy upon 

tho iire or thr hu#band or wire aould not booomo 

thr Froperty of l lth or during the llretime of 

both of them, It oannot be hold to bo ooziaunlty 

property, and 18 thorrtora the #~~lWt# property 

Of th8 On0 to whm it 18 pbyRbl8.” 

Tha lulr oi law whloh prooludra the wlro from 

SollOWlng the prOOar 0i the ln8uranoe polloy and recovering rgainrt tha sarm baaaus8 oonitzunlty ?uncls were expen@ad 

la the payzaentr of the pronluma was announood by 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 Rowlett v. 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 oommualty fIJIId@ 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 r eo o vor 

of lalntltf in error booaua8 oonolunlty 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 rnnounord by the Ccat o? Civil Appeal8 la 

the following laoguagrl 

*The use of aomraunlty fund8 in plpmnt 

0s pr8nAuau for lnrurnaor upoa tha iit0 or 

on* 890u80 la rator 0s the othrr 4008 aot, 
8onorablr oaorgr R. Shrppara, page 5 

in th r 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 o f law l nnounood in those other aasoa 

+a# reaently StatOd by the Mrt Worth Court or Clvll ApT 

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, l lther 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~llr f. Northwestern IiUtUal 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 relsburrement for tho 

fund8 80 U8ed.’ And furthorr *R@O0ver7 upon 

th8 rertaiU:Ug ground, aaml7, that th8 OaSh 8Urmaeor value or the pollay at 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 deol8lon In 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 brnorlclazy on tho death or dooodent and 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**