-23-
2046. See sec. 2031. For purposes of this computation, the
parties dispute whether section 2036(a) applies to the residence.
In relevant part, section 2036(a) provides:
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 income from, the property * * *
Congress enacted section 2036 intending to bring within a
decedent’s gross estate “‘transfers that are essentially
testamentary–-i.e., transfers which leave the transferor a
significant interest in or control over the property transferred
during his lifetime.’” Estate of Abraham v. Commissioner,
408 F.3d 26, 37 (1st Cir. 2005) (quoting United States v. Estate
of Grace, 395 U.S. 316, 320 (1969)), affg. T.C. Memo. 2004-39;
see also Mahoney v. United States, 831 F.2d 641 (6th Cir. 1987).
Pursuant to section 2036(a), decedent’s gross estate will include
the fair market value of the residence if decedent retained an
interest in the residence for her life or for any other period
that does not end before her death.
In order not to have retained an interest described in
section 2036(a), decedent must have “absolutely, unequivocally,
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011