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(other than a bona fide sale for full and adequate consideration)
if the decedent retained for life the possession or enjoyment of
the property, or the right to the income from the property. See
sec. 2036(a).6 Respondent determined and contends that assets
that decedent conveyed to the partnership are includable in his
estate under section 2036(a). Petitioner contends that section
2036(a) does not apply because decedent did not retain enjoyment
(i.e., economic benefits) of the transferred property and that
the transfer was for full and adequate consideration.
B. Whether Decedent's Gross Estate Includes Assets Held by the
Partnership When Decedent Died
We must decide whether section 2036(a) applies to the
following property: (1) Decedent’s residence at 214 Encino and
the Routt rental property; (2) a one-half interest in property in
6 Sec. 2036 provides as follows:
SEC. 2036(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.
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Last modified: May 25, 2011