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Section 2033 aside, and again assuming that these were
voidable transfers, we are equally convinced that the value of
decedent's Chapote limited partnership interest would be
includable in the gross estate pursuant to section 2038(a)(1).
Section 2038(a)(1) provides in pertinent part:
(a) In General.--The value of the gross estate
shall include the value of all property--
(1) Transfers after June 22, 1936.--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, where the
enjoyment thereof was subject at the date of his death
to any change through the exercise of a power (in
whatever capacity exercisable) by the decedent alone or
by the decedent in conjunction with any other person
* * * to alter, amend, revoke, or terminate, or where any
such power is relinquished during the 3-year period ending
on the date of the decedent's death.
In sum, the value of the gross estate includes the value of any
interest transferred by the decedent, the enjoyment of which is
subject to change by virtue of the decedent's retention of the
power to alter, amend, revoke, or terminate, or where such power
is relinquished during the 3-year period ending with the
decedent's death.
If Dilworth's transfers of the decedent's Chapote limited
partnership interest constituted voidable transfers, the value of
the property would be includable in decedent's gross estate
pursuant to section 2038. See, e.g., Estate of Casey v.
Commissioner, 948 F.2d 895 (4th Cir. 1991), revg. on other
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