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guardian ad litem that decedent would retain the right to the
income generated by the FLP interests transferred.
Generally, the Code imposes a tax on the transfer of a
decedent’s property in his taxable estate. Sec. 2001(a). The
“taxable estate” is defined as the value of the gross estate,
less applicable deductions. Sec. 2051. In turn, the gross
estate includes “all property, real or personal, tangible or
intangible, wherever situated” to the extent provided in sections
2033 through 2045. Sec. 2031(a). Section 2033 provides that
“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.” Included in the broad definition of gross estate is that
property described in section 2036, which provides in pertinent
part:
SEC. 2036. TRANSFERS WITH RETAINED LIFE ESTATE.
(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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