- 14 -
395 U.S. 316 (1969). Section 2036(a)5 generally provides that if
a decedent makes an inter vivos transfer of property, other than
a bona fide sale for adequate and full consideration in money or
money’s worth, and retains certain enumerated rights or interests
in the property which are not relinquished until death, the full
value of the transferred property will be included in the
decedent’s gross estate. Section 2036(a) is applicable when
three conditions are met: (1) The decedent made an inter vivos
transfer of property; (2) the decedent retained an interest or
right enumerated in section 2036(a)(1) or (2) or (b)6 in the
transferred property which he did not relinquish before his
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.
6Sec. 2036(b) provides that the retention of the right to
vote shares of a controlled corporation that were transferred by
a decedent is the retention of the enjoyment of the transferred
property.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011