## Facts

- A husband purchased two life-insurance policies before marriage and named his estate as beneficiary.
- The parties married in August 1960 and remained married until the husband’s death in March 1962.
- Premiums paid before marriage from the husband’s separate funds totaled $1,094.66.
- Premiums paid during marriage from community funds totaled $657.60.
- After the husband’s death, the executor treated the insurance proceeds as part of the husband’s separate estate.
- The widow sued, contending the community estate owned a proportional share of the proceeds based on community premium payments.
- The case was submitted on stipulated facts; no fraud or other equitable misconduct was alleged.

## Issues

1. Whether proceeds of life-insurance policies acquired before marriage and payable to the insured’s estate are partly community property in proportion to community-funded premium payments during marriage.
2. Whether, instead, the proceeds remain entirely the insured’s separate property, with the community estate limited to reimbursement for community premium payments.

## Decision

- The court held the entire policy proceeds were the deceased husband’s separate property because the policies were acquired before marriage.
- The court held community premium payments during marriage did not change the character of the policies or proceeds.
- The court affirmed an award of reimbursement to the community estate for premiums paid with community funds.
- The trial court’s judgment was affirmed.

## Legal Principles

- Under Texas inception-of-title principles, the character of property is fixed when the right is acquired; later community expenditures generally do not change that character.
- A life-insurance policy (and the right to receive future proceeds) is “property” subject to characterization under inception-of-title analysis.
- When community funds are used to pay premiums on a policy that is separate property at inception, the community’s remedy is reimbursement, not proportional ownership of the policy or its proceeds.
- The holding is confined to policies acquired before marriage, payable to the insured’s estate, and decided without fraud or additional evidentiary disputes.

## Conclusion

Because the husband acquired the policies before marriage, the proceeds payable to his estate remained his separate property at death; the community estate was entitled only to reimbursement for premiums paid from community funds during marriage.


McCurdy v. McCurdy, 372 S.W.2d 381 (Tex. Civ. App.—Waco 1963)