36
applies if: (1) The decedent made an inter vivos transfer of
property; (2) the decedent retained the possession or enjoyment
of, or the right to the income from, the transferred property, or
the right to designate who may use the property or the income
therefrom; and (3) the transfer was for less than adequate and
full consideration. Sec. 2036(a); National City Bank v. United
States, 371 F.2d 13, 15 (6th Cir. 1966). Section 2036(a) applies
only if all three of these requirements are met. Sec. 2036(a).
Petitioner bears the burden of proof. Rule 142(a).
As discussed next, we conclude that section 2036 does not
apply here because Paul Brown (1) received adequate and full
consideration for the 117 shares of Bengals stock, and (2) did
6(...continued)
(a) General rule.-- The value of the gross estate
shall include the value of all property to the extent
of any interest therein of which the decedent has at
any time made a transfer (except in case of a bona fide
sale for an adequate and full consideration in money or
money's worth), by trust or otherwise, under which he
has retained for his life or for any period not
ascertainable without reference to his death or for any
period which does not in fact end before his death--
(1) the possession or enjoyment of, or the
right to the income from, the property, or
(2) the right, either alone or in conjunction
with any person, to designate the persons who
shall possess or enjoy the property or the income
therefrom.
(b) Voting rights.-- For purposes of subsection
(a)(1), the retention of the right to vote (directly or
indirectly) shares of stock of a controlled corporation
shall be considered to be a retention of the enjoyment
of transferred property.
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