Source: https://openjurist.org/293/us/228
Timestamp: 2019-04-23 00:16:39+00:00

Document:
Messrs. J. Howard McLain and John M. Robinson, both of Charlotte, N.C., for petitioner.
While in the military service of the United States Moses Reid took out a war risk insurance policy for $10,000 and designated his father and mother as beneficiaries. He died intestate August 23, 1920, leaving no wife, child, or descendant. The father died November 22, 1926, intestate; the mother February 22, 1932. Her will designated an executrix.
No payment of any kind was made under the policy prior to the mother's death. Thereafter the Bureau of War Risk Insurance determined that during his life the insured became entitled to monthly disability payments aggregating $862.50 and caused this sum to be paid to his administrator. Also that while alive the father, as beneficiary, became entitled to installments aggregating $2,127.50 which was paid to his administrator. Further that during her life the mother, as beneficiary, became entitled to payments aggregating $3,938.75. This sum was paid to her executrix. Finally it ruled that the commuted value of unpaid monthly installments under the policy payable after the mother's death amounted to $5,768, and the assured's administrator collected this. The only funds received by him were from payments under the policy as above stated.
This proceeding, with proper parties, was duly begun by the assured's administrator in the superior court of Mecklenburg county, N.C. It sought binding direction concerning distribution of funds on hand and presented no other question.
'Wehn Moses Reid died, his distributees were his father, Adolphus Reid, and his mother, Ida Reid. Both were living. The statute cast upon each one-half of the personal property of deceased. Thereupon the right of property to such one-half immediately vested. C.S. § 137, subd. 6.
Considering what was said in United States v. Worley, 281 U.S. 339, 341, 50 S.Ct. 291, 74 L.Ed. 887, and in Singleton v. Cheek, supra, together with the language and evident purpose of the act of 1924 as amended, we think it clear enough that installments which accrued in favor of the father and mother of Reid as beneficiaries during their lives became the property of their respective estates. Also that installments which accrued to the assured during his lifetime, and the commuted value of the installments payable subsequent to the mother's death, became the property of his estate.
The court below erred in directing that the accruing before the death of the insured and mother— during their lives should be treated as parts of the estate of the insured. See Reivich v. United States (C.C.A.) 25 F.(2d) 670, 672; United States v. Woolen (C.C.A.) 25 F.(2d) 673, 676.
'If no person within the permitted class be designated as beneficiary for yearly renewable term insurance by the insured either in his lifetime or by his last will and testament or if the designated beneficiary does not survive the insured or survives the insured and dies prior to receiving all of the two hundred and forty installments or all such as are payable and applicable, there shall be paid to the estate of the insured the present value of the monthly installments thereafter payable, said value to be computed as of date of last payment made under any existing award.' 43 Stat. 1310 (38 USCA § 514).

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 § 514