7
by virtue of section 2035(a), it will be treated as having been
held by decedent at the time of his death. Commonwealth Trust
Co. v. Driscoll, 50 F. Supp. 949 (W.D. Pa. 1943), affd. 137 F.2d
653 (3d Cir. 1943). Nevertheless, as pointed out earlier, the
application of section 2035 has been substantially narrowed for
decedents dying after 1981. Under the facts of this case, the
transfer in 1986 by decedent's spouse was not of an interest in
property that would have been includable in his gross estate
under section 2036, 2037, 2038, or 2042 if he had retained it
until his death. Thus the transfer, though made within the 3-
year period, was not includable in his estate under section 2035.
See section 2035(d).
The remaining contentions of petitioner are without merit.
Petitioner argues that when Edward in 1974 conveyed an interest
in the property to decedent without consideration, he retained a
life estate within the reach of section 2036, which at his death
required the full value of the interest to be included in the
estate of decedent's spouse. Section 2036 provides generally
that the gross estate shall include the value of any interest of
which the decedent has made a transfer and retained a life
estate. As best this Court can discern, petitioner is arguing
that when decedent's spouse created the tenancy by the entirety
in favor of decedent, since he retained an undivided interest in
the whole, such undivided interest in the whole is therefore a
life estate. This is simply a rehash of petitioner's argument
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011