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decedent was part of “a bona fide sale for an adequate and full
consideration in money or money’s worth”, then section 2036(a)
will not require inclusion in the gross estate. Id. If there is
consideration, but it is not “adequate and full consideration”,
then the property interest transferred by the decedent is
included in his gross estate and an offset is allowed for the
partial consideration received. Sec. 2043(a);10 Estate of Magnin
v. Commissioner, 184 F.3d at 1081-1082; United States v. Past,
347 F.2d at 14.
As a result of the 1971 transfers in trust of the proceeds
9(...continued)
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 * *
*
(1) the possession or enjoyment of, or the
right to the income from, the property * * *
10Sec. 2043(a) provides:
SEC. 2043(a). In General.–-If any one of the
transfers, trusts, interests, rights, or powers
enumerated and described in sections 2035 to 2038,
inclusive, and section 2041 is made, created,
exercised, or relinquished for a consideration in money
or money’s worth, but is not a bona fide sale for an
adequate and full consideration in money or money’s
worth, there shall be included in the gross estate only
the excess of the fair market value at the time of
death of the property otherwise to be included on
account of such transaction, over the value of the
consideration received therefor by the decedent.
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