Estate of Lillie Rosen, Deceased, Ilene Field and Herbert Silver, Co-Personal Representatives - Page 33

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          parties dispute whether section 2036(a)(1) applies to the                   
          transferred assets.  In relevant part, section 2036(a)(1)                   
          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.”  United States v. Estate of Grace, 395 U.S.           
          316, 320 (1969); see also Estate of Strangi v. Commissioner,                
          417 F.3d 468, 476 (5th Cir. 2005) (citing Estate of Lumpkin v.              
          Commissioner, 474 F.2d 1092, 1097 (5th Cir. 1973), vacating                 
          56 T.C. 815 (1971)), affg. T.C. Memo. 2003-145.  Under section              
          2036(a)(1), decedent’s gross estate will include the fair market            
          value of the transferred assets to the extent that decedent                 
          retained possession or enjoyment of the assets for her life or              
          for any other period that does not end before her death.  Section           
          2036(a) “describes a broad scheme of inclusion in the gross                 





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