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In support of respondent’s position under section
2036(a)(1), respondent argues:
A decedent’s gross estate includes property inter-
ests with a retained life estate. I.R.C. � 2036(a).
Inclusion is required where the decedent retained
“possession or enjoyment” or right to income from
property transferred for less than full consideration.
I.R.C. �* * * 2036(a)(1)* * *. Here, the decedent
retained the necessary “possession or enjoyment” of his
personal residence–Unit #610N such that its value
should be included in the decedent’s gross estate.
Even though the decedent and his eight children exe-
cuted a series of conveyances transferring legal title
to Unit #610N, no consideration was paid by the dece-
dent’s children for the conveyance. The decedent paid
all of the expenses for Unit #610N before, during, and
after the series of conveyances. The decedent did not
pay any rent for the occupancy of Unit #610N before,
during, and after the series of conveyances. His
“possession or enjoyment” of Unit #610N was undisturbed
during and after the series of transfers. He did not
need the approval of his children to have guests or
redecorate Unit #610N. It was uncontroverted at trial
that even if the decedent had not paid expenses to
maintain Unit #610N during and after the series of
transfers, his children would not have sought to evict
him from Unit #610N. Finally, as legal title of the
decedent’s eight children in Unit #610N increased
progressively to 36%, then 72% and, finally, 100%, the
decedent still paid all of the expenses to maintain
Unit #610N without reflecting any change in ownership.
When all is said and done, the decedent retained
complete “possession or enjoyment” over Unit #610N
before, during, and after the series of transfers. As
such, Code section 2036 mandates that the value of Unit
#610N be included in the decedent’s gross estate. * * *
Section 2036(a)(1) applies if there exists at the time of
the transfer of property an agreement, either express or implied,
that the transferor will retain possession or enjoyment of the
property transferred, even if the transferor has no legally
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