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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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