- 10 - valuation as a single-life annuity, and correspondingly reduces the amount of the taxable gift of the remainder. Respondent disagrees with this result. As pertinent herein, section 2702 provides: SEC. 2702. SPECIAL VALUATION RULES IN CASE OF TRANSFERS OF INTERESTS IN TRUSTS. (a) Valuation Rules.-- (1) In general.--Solely for purposes of determining whether a transfer of an interest in trust to (or for the benefit of) a member of the transferor’s family is a gift (and the value of such transfer), the value of any interest in such trust retained by the transferor or any applicable family member * * * shall be determined as provided in paragraph (2). (2) Valuation of retained interests.-- (A) In general.--The value of any retained interest which is not a qualified interest shall be treated as being zero. (B) Valuation of qualified interest.-- The value of any retained interest which is a qualified interest shall be determined under section 7520 [providing for use of valuation tables prescribed by the Secretary for annuities, life interests, etc.]. (3) Exceptions.-- (A) In general.--This subsection shall not apply to any transfer-- (i) if such transfer is an incomplete gift, * * * * * * * (B) Incomplete gift.--For purposes of subparagraph (A), the term “incomplete gift” means any transfer which would not be treatedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011