Estate of Austin Korby - Page 13

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          complied with the requirements of section 7491(a)(2).  Therefore,           
          we conclude that the estate’s burden of proof does not shift to             
               The Internal Revenue Code imposes a Federal estate tax on              
          the transfer of the taxable estate of a decedent who is a citizen           
          or resident of the United States.  Sec. 2001.  The value of the             
          gross estate includes the value of all property to the extent of            
          the decedent’s interest therein on the date of death.  Sec. 2033.           
          I.   Section 2036                                                           
               The purpose of section 2036 is to include in a deceased                
          taxpayer’s gross estate the value of inter vivos transfers that             
          were testamentary in nature.  United States v. Estate of Grace,             
          395 U.S. 316 (1969).  Section 2036(a)5 generally provides that if           

               5SEC. 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,                       
                         (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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