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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
respondent.
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,
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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