# 26 U.S.C. § 2043: Transfers for insufficient consideration

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s2043>. Cite pinpoints as 26 U.S.C. § 2043(a)(1).

## § 2043(a) In general

If any one of the transfers, trusts, interests, rights, or powers enumerated and described in sections 2035 to 2038, inclusive, and section 2041 is made, created, exercised, or relinquished for a consideration in money or money’s worth, but is not a bona fide sale for an adequate and full consideration in money or money’s worth, there shall be included in the gross estate only the excess of the fair market value at the time of death of the property otherwise to be included on account of such transaction, over the value of the consideration received therefor by the decedent.

## § 2043(b) Marital rights not treated as consideration

**§ 2043(b)(1) In general.** For purposes of this chapter, a relinquishment or promised relinquishment of dower or curtesy, or of a statutory estate created in lieu of dower or curtesy, or of other marital rights in the decedent’s property or estate, shall not be considered to any extent a consideration “in money or money’s worth”.

**§ 2043(b)(2) Exception.** For purposes of section 2053 (relating to expenses, indebtedness, and taxes), a transfer of property which satisfies the requirements of paragraph (1) of section 2516 (relating to certain property settlements) shall be considered to be made for an adequate and full consideration in money or money’s worth.

## Regulations

- [Treas. Reg. § 20.2043-1](/26/reg/20.2043-1.md): Transfers for insufficient consideration. (interprets § 2043)

## Leading cases

- [United States v. Past, 347 F.2d 7 (9th Cir. 1965)](https://www.courtlistener.com/opinion/268308/united-states-v-howard-past-of-the-estate-of-edna-c-rosedale-ogg/)
- [Estate of Christ v. Commissioner, 54 T.C. 493 (1970)](https://www.courtlistener.com/opinion/4702940/estate-of-christ-v-commr/)
- [Estate of Waters v. Commissioner, 48 F.3d 838 (4th Cir. 1995)](https://www.courtlistener.com/opinion/690297/estate-of-james-h-waters-jr-deceased-william-roger-waters-and-john-b/)

## Connections

Cites: § 2041 Powers of appointment; § 2053 Expenses, indebtedness, and taxes; § 2516 Certain property settlements

Cited by: § 2053 Expenses, indebtedness, and taxes

Derived from: 1939 § 811(i); 1939 § 812(b)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 388
- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 803