OAG 41-110.

Case Date:May 15, 1941
Oregon Attorney General Opinions 1941. OAG 41-110. 285OPINION NO. 41-110[20 Or. Op. Atty. Gen. 285]In computing inheritance taxes deductions on account of mortgage indebtedness to be made only to the extent of unpaid balances. Proceeds of life insurance policies payable to named beneficiaries not deductible from such indebtedness in computing amount of estate of the insured subject to inheritance taxes.May 15, 1941.Hon. Leslie M. Scott,State Treasurer. Dear Sir: It appears from your letter that a resident of this state died leaving as part of his estate real property encumbered by a mortgage, and that he also left life insurance policies payable to named beneficiaries who were alive at the time of his death; that in addition to the mortgage indebtedness there is a claim against the estate of the decedent represented by a note, and that the proceeds of the insurance policy were pledged as security for the mortgage and the note. You request my opinion whether or not the full amounts of the mortgage and the note are proper deductions from the gross estate, or if deductions on that account should be made only to the amount of said obligations less the amount paid thereon from the life insurance proceeds. Section 20-101, O. C. L. A., provides:
"* * * there shall be exempted from taxation under this act all pro
286ceeds of policies and contracts of life insurance taken out at any time on the life of the decedent and payable to a beneficiary or beneficiaries other than the estate or the executor or administrator of the estate of the deceased insured, whether payable directly or to or through a trustee, immediately or at future dates; * * *". Section 20-106, O. C. L. A., provides for deductions from gross value of taxable estates...

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