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A. Is the Estate Required To Include the Full Value of Western
in the Gross Estate?
The estate tax is levied on the taxable estate. Sec.
2001(a).3 The taxable estate equals the gross estate, less
deductions. Sec. 2051. Generally, under section 2033, the gross
estate includes the value of all property to the extent of a
decedent’s interest therein at the time of death.
In particular, the question we consider is governed by
section 2040(a), which, in pertinent part, provides:
SEC. 2040 (a). General Rule.--The value of the
gross estate shall include the value of all property to
the extent of the interest therein held as joint
tenants with right of survivorship by the decedent and
any other person, * * * except such part thereof as may
be shown to have originally belonged to such other
person and never to have been received or acquired by
the latter from the decedent for less than an adequate
and full consideration in money or money’s worth:
Provided, That where such property or any part thereof,
or part of the consideration with which such property
was acquired, is shown to have been at any time
acquired by such other person from the decedent for
less than an adequate and full consideration in money
or money’s worth, there shall be excepted only such
part of the value of such property as is proportionate
to the consideration furnished by such other person: *
* *
If part of the consideration is found to have been
contributed by the surviving joint tenant, then the part of the
value of the property that is proportionate to such consideration
3 All section references are to the Internal Revenue Code,
as amended and in effect as of the date of decedent’s death, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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Last modified: May 25, 2011