Amended 1987, 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508 redesignated subsec. (d) as (c) and struck out former subsec. (c) which enunciated a rule that retention of retained interest would be considered to be a retention of enjoyment of transferred property if a person held a substantial interest in an enterprise, and such person in effect transferred after Dec. 17, 1987, property having a disproportionately large share of the potential appreciation in such person’s interest in the enterprise while retaining an interest in the income of, or rights in, the enterprise.
- 1987 Pub. L. 100-203 Pub. L. 100–203 added subsec. (c) and redesignated former subsec. (c) as (d).
Cases: United States v. Byrum, 408 U.S. 125 (1972)
Final rules 3
(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—
Amended 1962, 1976, 1978
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 702(i)(2), struck out provision following par. (2) relating to the retention of voting rights in retained stock.
- 1976 Pub. L. 94-455 Pub. L. 94–455 provided that, for purposes of par. (1), the retention of voting rights in retained stock be considered to be a retention of the enjoyment of that stock.
- 1962 Pub. L. 87-834 Pub. L. 87–834 struck out provisions which excepted real property situated outside of the United States.
Cases: Estate of Maxwell v. Commissioner, 3 F.3d 591 (1st Cir. 1993); Estate of Thompson v. Commissioner, 382 F.3d 367 (3rd Cir. 2004)
Cited by 2
(1) the possession or enjoyment of, or the right to the income from, the property, or
Cited by 13
(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.
Cited by 1
(b) Voting rights
Amended 1978
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 702(i)(1), added subsec. (b) and redesignated former subsec. (b) as (c).
(1) In general For purposes of subsection (a)(1), the retention of the right to vote (directly or indirectly) shares of stock of a controlled corporation shall be considered to be a retention of the enjoyment of transferred property.
Cited by 2
(2) Controlled corporation For purposes of paragraph (1), a corporation shall be treated as a controlled corporation if, at any time after the transfer of the property and during the 3-year period ending on the date of the decedent’s death, the decedent owned (with the application of section 318), or had the right (either alone or in conjunction with any person) to vote, stock possessing at least 20 percent of the total combined voting power of all classes of stock.
(3) Coordination with section 2035 For purposes of applying section 2035 with respect to paragraph (1), the relinquishment or cessation of voting rights shall be treated as a transfer of property made by the decedent.
(c) Limitation on application of general rule This section shall not apply to a transfer made before March 4, 1931; nor to a transfer made after March 3, 1931, and before June 7, 1932, unless the property transferred would have been includible in the decedent’s gross estate by reason of the amendatory language of the joint resolution of March 3, 1931 (46 Stat. 1516).
Amended 1978, 1987, 1988, 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508 redesignated subsec. (d) as (c) and struck out former subsec. (c) which enunciated a rule that retention of retained interest would be considered to be a retention of enjoyment of transferred property if a person held a substantial interest in an enterprise, and such person in effect transferred after Dec. 17, 1987, property having a disproportionately large share of the potential appreciation in such person’s interest in the enterprise while retaining an interest in the income of, or rights in, the enterprise.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 3031(e), substituted “an interest” for “a disproportionately large share” after “whole retaining”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 3031(g)(1), substituted “consideration furnished by” for “sales to” in heading, and amended text generally. Prior to amendment, text read as follows: “The exception contained in subsection (a) for a bona fide sale shall not apply to a transfer described in paragraph (1) if such transfer is to a member of the transferor’s family.”
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 3031(d), substituted “Except as provided in regulations, an” for “An”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 3031(a)(1), amended par. (4) generally, substituting provisions relating to treatment of certain transfers for provisions relating to coordination with section 2035.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 3031(g)(2), amended par. (5) generally, substituting provisions relating to the making of appropriate adjustments in amounts included in gross estate for provisions relating to coordination with section 2043.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 3031(b), added par. (6).
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 3031(b)[(c)], added pars. (7) and (8).
- 1987 Pub. L. 100-203 Pub. L. 100–203 added subsec. (c) and redesignated former subsec. (c) as (d).
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 702(i)(1), added subsec. (b) and redesignated former subsec. (b) as (c).