Estate of William G. Street, Deceased, Anne Street Skipper, Executrix - Page 9

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          Commissioner v. Estate of Bosch, 387 U.S. 456 (1967); Estate of             
          Rowan v. Commissioner, 54 T.C. 633 (1970).                                  
               In the present situation, Anne Street Skipper, then                    
          coadministratrix, sued in the Texas State courts to recover all             
          the insurance proceeds that her late father had designated to be            
          payable to his estate.  In a fully contested jury trial, she won            
          a complete victory.  The Texas Court of Appeals affirmed, as we             
          have related above, and the Supreme Court of Texas refused to               
          entertain a writ of error.  We think it is now clear, as                    
          elucidated in the opinion of the Texas Court of Appeals, quoted             
          in our findings, that although life insurance policies purchased            
          with community funds during life may be community property in               
          Texas, the insured-owner of such policies has the right to                  
          designate someone other than his spouse as the sole beneficiary,            
          and, if so, upon death the insurance proceeds are removed from              
          the regime of community property, and the surviving wife may take           
          nothing under those policies, so long as it is clear that there             
          is no fraud upon the wife.                                                  
               The Texas courts so held in this matter, and we think this             
          is a correct exposition of Texas law, and we shall follow it.               
          Decedent, in designating his estate as a beneficiary of the life            
          insurance that had been acquired with community funds, removed              
          the wife's interest in the insurance at death from the regime of            
          community property.  He avoided a fraud by making ample other               

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