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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.
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