Estate of Charles Porter Schutt, Deceased, Charles P. Schutt, Jr., and Henry I. Brown III, Co-Executors - Page 39

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          citizen or resident of the United States.”  Sec. 2001(a).  The              
          taxable estate, in turn, is defined as “the value of the gross              
          estate”, less applicable deductions.  Sec. 2051.  Section 2031(a)           
          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 (i.e., subtitle B,            
          chapter 11, subchapter A, part III of the Code).                            
               Section 2033 states broadly 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 2036, which reads in pertinent part            
          as follows:                                                                 
               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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