- 26 - estate.12 Where a transfer of property fails to meet the requirements of this exception to section 2036(a) because it was for insufficient consideration, section 2043(a) provides some relief from potential double taxation. Estate of Frothingham v. Commissioner, supra at 216. Section 2043(a) provides in pertinent part: (a) In General.--If any one of the transfers * * * described in sections 2035 to 2038, inclusive, and section 2041 is made * * * for a consideration in money or money's worth, but is not a bona fide sale for an adequate and full consideration in money or money's worth, there shall be included in the gross estate only the excess of the fair market value at the time of death of the property otherwise to be included on account of such transaction, over the value of the consideration received therefor by the decedent. Thus, under section 2043(a), the consideration received is to be valued at the time of receipt by the decedent (i.e., at the time 12Even if we were to hold that sec. 2036(a) requires receipt of adequate and full consideration for only the remainder interest, we would find that petitioner has not met its burden of proving that the value of the interest in Joseph's stock that Cyril received equaled the value of the remainder interest transferred. We conclude, infra, that the value of the interest received by Cyril is $43,878. The value of the remainder interest transferred by Cyril is $42,000 according to petitioner and $122,997.64 under respondent's calculations. These values were determined after the parties made certain posttrial adjustments to their expert reports. Although we need not determine the precise value of the remainder interest transferred by Cyril, we conclude that it was more than $43,878. This conclusion is based on the evidence, including the expert witnesses' opinions and the values placed on JM and Specialty stock in gift and estate tax returns filed by Cyril and Joseph between 1948 and 1953.Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
Last modified: May 25, 2011