Estate of Rose D' Ambrosio, Deceased, Vita D'Ambrosio, Executrix - Page 9

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          the trust's assets because the decedent's retained life interest            
          was received in a transfer for adequate and full consideration              
          under section 2036(a).  The Commissioner disagreed.  The                    
          Commissioner determined that the decedent's gross estate included           
          the date-of-death value of the property which the decedent had              
          contributed to the trust, less the value of the consideration               
          that she received in return.  Agreeing with the Commissioner's              
          position, the Claims Court held that the value of the decedent's            
          transfer to the trust, namely her one-half share of the community           
          property, was includable in her gross estate under section                  
          2036(a), less the value of the consideration received by her in             
          return for the transfer.  According to the court, the                       
          consideration flowing from the taxpayer consisted of her half of            
          the community property and did not consist only of the remainder            
          interest that was left to her son under the trust.  The Court of            
          Appeals for the Federal Circuit affirmed, essentially for the               
          reasons stated by the Claims Court.                                         
               In this Court, there is authority to a similar effect.  In             
          Estate of Gregory v. Commissioner, supra, as in the Gradow case,            
          the decedent's husband died and under his will gave her a                   
          "widow's election" whether to take her separate share of the                
          community property outright or instead permit her share to pass             
          to a testamentary trust, whereby she would acquire a life                   
          interest in all of their community property.  The decedent                  

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