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Given the language used in the above-quoted provisions, it
has long been recognized that “The general purpose of this
section is ‘to include in a decedent’s gross estate transfers
that are essentially testamentary’ in nature.” Ray v. United
States, 762 F.2d 1361, 1362 (9th Cir. 1985) (quoting United
States v. Estate of Grace, 395 U.S. 316, 320 (1969)).
Accordingly, courts have emphasized that the statute “describes a
broad scheme of inclusion in the gross estate, not limited by the
form of the transaction, but concerned with all inter vivos
transfers where outright disposition of the property is delayed
until the transferor’s death.” Guynn v. United States, 437 F.2d
1148, 1150 (4th Cir. 1971).
As used in section 2036(a)(1), the term “enjoyment” has been
described as “synonymous with substantial present economic
benefit.” Estate of McNichol v. Commissioner, 265 F.2d 667, 671
(3d Cir. 1959), affg. 29 T.C. 1179 (1958); see also Estate of
Reichardt v. Commissioner, 114 T.C. 144, 151 (2000). Regulations
additionally provide that use, possession, right to income, or
other enjoyment of transferred property is considered as having
been retained or reserved “to the extent that the use,
possession, right to the income, or other enjoyment is to be
applied toward the discharge of a legal obligation of the
decedent, or otherwise for his pecuniary benefit.” Sec. 20.2036-
1(b)(2), Estate Tax Regs. Moreover, possession or enjoyment of
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