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Discussion
I. General Rules
As a general rule, the Internal Revenue Code imposes a
Federal tax on “the transfer of the taxable estate of every
decedent who is a citizen or resident of the United States.”
Sec. 2001(a). Such taxable estate, in turn, is defined as the
“value of the gross estate”, less applicable deductions. Sec.
2051. Section 2031(a) then specifies that the gross estate
comprises “all property, real or personal, tangible or
intangible, wherever situated”, to the extent provided in
sections 2033 through 2045.
Section 2033 broadly states that “The value of the gross
estate shall include the value of all property to the extent of
the interest therein of the decedent at the time of his death.”
Sections 2034 through 2045 then explicitly mandate inclusion of
several more narrowly defined classes of assets. Among these
specific sections is section 2039, which reads as follows:
SEC. 2039. ANNUITIES.
(a) General.--The gross estate shall include the
value of an annuity or other payment receivable by any
beneficiary by reason of surviving the decedent under
any form of contract or agreement entered into after
March 3, 1931 (other than as insurance under policies
on the life of the decedent), if, under such contract
or agreement, an annuity or other payment was payable
to the decedent, or the decedent possessed the right to
receive such annuity or payment, either alone or in
conjunction with another 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.
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Last modified: May 25, 2011