Estate of William G. Street, Deceased, Anne Street Skipper, Executrix - Page 8

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          purposes because of Mrs. Street's alleged one-half community                
          property interest.                                                          
               The problem presented here involves the application of both            
          State and Federal law, and we treat them in that order.                     
          Generally State law determines the ownership of property, Poe v.            
          Seaborn, 282 U.S. 101 (1930), which means here that Texas                   
          property law determines the ownership of the insurance policies             
          and proceeds therefrom on decedent's life.  On the other hand,              
          such property rights, once determined under State law, will be              
          taxable as the Code provides, and that is a Federal matter,                 
          Morgan v. Commissioner, 309 U.S. 78 (1940); Broday v. United                
          States, 455 F.2d 1097 (5th Cir. 1972).                                      
               In determining the binding or persuasive effect of State               
          court decrees on Federal courts, interpreting the application of            
          State law, the Supreme Court has acknowledged that where State              
          law governs the ownership of property (as here), the State's                
          highest court is the best authority on its own law; the opinion             
          of a lower State court will not be binding on a Federal court,              
          but the ruling of such State court is not to be disregarded by a            
          Federal court unless it is considered that the State's highest              
          court would decide otherwise.  If there is no decision by the               
          State's highest court, the Federal court must do the best it can            
          to discern what such State's highest court would decide.                    

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