No. S-177 (1955).
Case Date | September 30, 1955 |
Court | Texas |
Texas Attorney General Opinions
1955.
No. S-177 (1955).
1September 30, 1955Hon. Robert S. CalvertComptroller of
Public AccountsAustin, TexasOpinion No. S-177Re: Imposition of inheritance tax where survivorship benefits
accrue under pension plan.Dear Mr.
Calvert: You have requested the opinion of this office on the above
captioned matter and have submitted in connection therewith the following
facts.
At the decedent's death certain benefits accrued to his widow
under a "Retirement Plan" established by his employer. The Plan is administered
by three trustees, designated by the employer, who administer the Plan by
receiving all the employer's contributions or payments and purchasing
Retirement Income and Group Income Endowment insurance. This insurance together
with money from a special fund within the trust provided the source of the
benefits here in question. The employee paid no part of the cost of the
premiums of the insurance, nor did he contribute to the special fund.
The employer has no ownership rights in the payments it makes to
the trustees or in the funds held by them or in the insurance policies
purchased with said funds. Participant employees are not allowed to transfer,
assign, withdraw or dispose of any part of the benefits or to take action with
respect to any part of the contributions or policies. They may not borrow on
any benefits nor can such benefits be reached by a creditor or lien holder.
However the plan does provide for withdrawal benefits similar to the regular
cash surrender value of insurance policies. If employment is terminated because
of the employee's misconduct, benefits may be suspended, reduced or
cancelled.
The employer reserves the right to modify or terminate the Plan
and to reduce or discontinue contributions. Any such action would not deprive
the employee of his equity at that time.
Monthly retirement income in excess of $20.00 a month is written
on an individual policy basis, and a physical examination is necessary. Each
$10.00 a month retirement income provides $1,000.002life insurance. For example, if current retirement funding is on
the basis of a monthly retirement income of $40.00, the life insurance
protection is $4,000.00. Should the applicant fail to pass the medical
examination, under the Plan he would still have $2,000.00 face value life
insurance plus a minimum benefit of the total premiums paid for individual
retirement annuity policies in excess of...
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