Lapas attēli
PDF
ePub
[blocks in formation]

derived

originally from such compensation
or from separate property of the
surviving spouse. In no case shall
such interest included in the gross
estate of the decedent be less than
the value of such part of the com-

originally from such compensation the surviving spouse or
or from separate property of the
surviving spouse. In no case shall
such interest included in the gross
estate of the decedent be less than
the value of such part of the com-
munity property as was subject to
the decedent's power of testamen-munity property as was subject to
tary disposition.

Sec. 811, I. R. C., supra, amended by Sec. 402 (b), R. A. of 1942, to read as above. Sec. 401 of said Act makes amendment applicable to estates of decedents dying after Oct. 21, 1942.

For Sec. 811, I. R. C., before amendment, see 1942 column..

Sec. 811. (f) Powers of appointment.

the decedent's power of testamen-
tary disposition.

Sec. 811, I. R. C., supra,
amended by Sec. 402 (b), R.
A. of 1942, by adding language
in underlined bold face type
in first paragraph and by add-
ing second paragraph. Sec.
401 of said Act makes amend-
ment applicable to estates of
decedents dying after Oct. 21,
1942.

Sec. 811. (f) Powers of appointment.

Estates of Decedents
Dying during 1941

Sec. 811. (f) Property passing under general power of appoint ment. To the extent of any prop

Sec. 811. (f) (1) In general.— Sec. 811. (f) (1) In general.—erty passing under a general power To the extent of any property (A) To the extent of any property (A) of appointment exercised by the with respect to which the decedent with respect to which the decedent decedent (1) by will, or (2) by has at the time of his death a power has at the time of his death a power deed executed in contemplation of of appointment, or (B) with re- of appointment, or (B) with re- or intended to take effect in posspect to which he has at any time spect to which he has at any time session or enjoyment at or after his exercised or released a power of exercised or released a power of death, or (3) by deed under whicł appointment in contemplation of appointment in contemplation of he has retained for his life or any death, or (C) with respect to which death, or (C) with respect to which period not ascertainable without he has at any time exercised or re- he has at any time exercised or re-reference to his death or for any leased a power of appointment by leased a power of appointment by period which does not in fact end a disposition intended to take effect a disposition intended to take effect in possession or enjoyment at or in possession or enjoyment at or after his death, or by a disposition after his death, or by a disposition under which he has retained for his under which he has retained for his life or any period not ascertainable life or any period not ascertainable without reference to his death or without reference to his death or for any period which does not in for any period which does not in fact end before his death (i) the fact end before his death (i) the possession or enjoyment of, or the possession or enjoyment of, or the right to the income from, the prop-right to the income from, the property, or (ii) the right, either alone erty, or (ii) the right, either alone or in conjunction with any person, or in conjunction with any person, to designate the persons who shall to designate the persons who shall possess or enjoy the property or possess or enjoy the property or the income therefrom; except in the income therefrom; except in case of a bona fide sale for an adequate and full consideration in money or money's worth.

Sec. 811. (f) (2) Definition of power of appointment.-For the purposes of this subsection the term "power of appointment" means any power to appoint exercisable by the decedent either alone or in conjunction with any person, except

case of a bona fide sale for an ade-
quate and full consideration in
money or money's worth.

Sec. 811. (f) (2) Definition of power of appointment. For the purposes of this subsection the term "power of appointment" means any power to appoint exercisable by the decedent either alone or in conjunction with any person, except

(A) a power to appoint within a (A) a power to appoint within a class which does not include any class which does not include any others than the spouse of the de- others than the spouse of the decedent, spouse of the creator of the cedent, spouse of the creator of the power, descendants of the decedent power, descendants of the decedent or his spouse, descendants (other or his spouse, descendants (other

before his death (A) the possession or enjoyment of, or the right to the income from, the property, or (B) the right, either alone or in conjunction with any person, to desig nate the persons who shall possess or enjoy the property or the income therefrom; except in case of a bona fide sale for an adequate and full consideration in money or money's worth; and

Estates of Decedents
Dying during 1940

Estates of Decedents
Dying after Feb. 10, 1939

Estates of Decedents Dying on or before Feb. 10, 1939

Sec. 811. (f) Property passing Sec. 811. (f) Property passing under general power of appoint- under general power of appointment. To the extent of any prop-ment.-To the extent of any property passing under a general power erty passing under a general power of appointment exercised by the of appointment exercised by the decedent (1) by will, or (2) by decedent (1) by will, or (2) by deed executed in contemplation of deed executed in contemplation of or intended to take effect in possession or enjoyment at or after his death, or (3) by deed under which he has retained for his life or any period not ascertainable without reference to his death or for any period which does not in fact end before his death (A) the possession or enjoyment of, or the right to the income from, the property, or (B) 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; except in case of a bona fide sale for an adequate and full consideration in money or money's worth; and

or intended to take effect in pos-
session or enjoyment at or after his
death, or (3) by deed under which
he has retained for his life or any
period not ascertainable without
reference to his death or for any
period which does not in fact end
before his death (A) the possession
or enjoyment of, or the right to the
income from, the property, or (B)
the right, either alone or in con-
junction with any person, to desig-
nate the persons who shall possess
or enjoy the property or the in-
come therefrom; except in case of
a bona fide sale for an adequate
and full consideration in money or
money's worth; and

Sec. 302 (f).

See p. 490, Eighth Edition.

Estates of Decedents
Dying during 1943

than the decedent) of the creator of the power or his spouse, spouses of such descendants, donees described in section 812 (d), and donees described in section 861 (a) (3). As used in this subparagraph, the term "descendant" includes adopted and illegitimate descendants, and the term "spouse" includes former spouse; and

(B) a power to appoint within a restricted class if the decedent did not receive any beneficial interest, vested or contingent, in the property from the creator of the power or thereafter acquire any such interest, and if the power is not exercisable to any extent for the benefit of the decedent, his estate, his creditors, or the creditors of his

estate.

If a power to appoint is exercised by creating another power to appoint, such first power shall not be considered excepted under subparagraph (A) or (B) from the definition of power of appointment to the extent of the value of the property subject to such second power to appoint. For the purposes of the preceding sentence the value of the property subject to such second power to appoint shall be its value unreduced by any precedent or subsequent interest not subject to such power to appoint.

Estates of Decedents
Dying during 1942

than the decedent) of the creator of
the power or his spouse, spouses of
such descendants, donees described
in section 812 (d), and donees de-
scribed in section 861 (a) (3). As
used in this subparagraph, the term
"descendant" includes adopted and
illegitimate descendants, and the
term "spouse" includes former
spouse; and

(B) a power to appoint within a
restricted class if the decedent did
not receive any beneficial interest,
vested or contingent, in the property
from the creator of the power or
thereafter acquire any such interest,
and if the power is not exercisable
to any extent for the benefit of the
decedent, his estate, his creditors, or
the creditors of his estate.

If a power to appoint is exercised
by creating another power to ap-
point, such first power shall not be
considered excepted under subpara-
graph (A) or (B) from the defini-
tion of power of appointment to the
extent of the value of the property
subject to such second power to ap-
point. For the purposes of the pre-
ceding sentence the value of the
property subject to such second
power to appoint shall be its value
unreduced by any precedent or sub-
sequent interest not subject to such
power to appoint.

Sec. 811. (f) (3) Date of exist- Sec. 811. (f) (3) Date of existence of power.-For the purposes ence of power.-For the purposes of this subsection the power of ap- of this subsection the power of appointment shall be considered to ex-pointment shall be considered to exist on the date of the decedent's ist on the date of the decedent's death even though the exercise of death even though the exercise of the power is subject to a precedent the power is subject to a precedent giving of notice or even though the exercise of the power takes effect only on the expiration of a stated period after its exercise, whether or not on or before the date of the decedent's death notice has been given or the power has been exercised.

Sec. 811 (f), I. R. C., supra, amended to read as above by Sec. 403 (a), R. A. of 1942. See Sec. 403 (d), R. A. of 1942, in fn. 29, below, relative to powers with respect to which amendment not applicable.

giving of notice or even though the
exercise of the power takes effect
only on the expiration of a stated
period after its exercise, whether or
not on or before the date of the de-
cedent's death notice has been given
or the power has been exercised.

Sec. 811 (f), I. R. C., supra,
amended to read as above by
Sec. 403 (a), R. A. of 1942.
See Sec. 403 (d), R. A. of 1942,
in fn. 29, below, relative to
powers with respect to which
amendment not applicable.

29 Sec. 403 (d), R. A. of 1942 (referring to amendments made by Sec. 403 (a), (b) and (c), R. A. of 1942, to Secs. 811 (f), 812 (d), 861 (a) (3) and 826 (d), I. R. C.) provides as follows:

Sec. 403. (d) Powers with respect to which amendments not applicable.—

(1) The amendments made by this section shall not apply with respect to a power to appoint, created on or

Estates of Decedents
Dying during 1941

before the date of the enactment of this Act, which is other than a power exercisable in favor of the decedent, his estate, his creditors, or the creditors of his estate, unless such power is exercised after the date of the enactment of this Act.

(2) The amendments made by this section shall not become applicable with respect to a power to appoint created on or before the date of enactment of this Act, which is exercisable in favor of the decedent, his estate,

Estates of Decedents Dying during 1940

Estates of Decedents Dying after Feb. 10, 1939

Estates of Decedents Dying on or before Feb. 10, 1939

his creditors, or the creditors of his estate, if at such date the donee of such power is under a legal disability to release such power, until six months after the termination of such legal disability. For the purposes of the preceding sentence, an individual in the military or naval forces of the United States shall, until the termination of the present war, be considered under a legal disability to release a power to appoint.

(3) The amendments made by this section shall not apply with respect to any power to appoint created on or before the date of the enactment of this Act if it is released before January 1, 1943, or within the time limited by paragraph (2) in cases to which such paragraph is applicable; or if the decedent dies before January 1, 1943, or within the time limited by paragraph (2) in cases to which such paragraph is applicable, and such power is not exercised.

[blocks in formation]

Sec. 811. (g) (2) Receivable by Sec. 811. (g) (2) Receivable by other beneficiaries.-To the extent | other beneficiaries.-To the extent of the amount receivable by all of the amount receivable by all other other beneficiaries as insurance beneficiaries as insurance under under policies upon the life of the policies upon the life of the decedecedent (A) purchased with pre-dent (A) purchased with premiums, miums, or other consideration, paid or other consideration, paid directly directly or indirectly by the dece- or indirectly by the decedent, in dent, in proportion that the amount proportion that the amount so paid so paid by the decedent bears to the by the decedent bears to the total total premiums paid for the insur- premiums paid for the insurance, or ance, or (B) with respect to which (B) with respect to which the dethe decedent possessed at his death cedent possessed at his death any any of the incidents of ownership, of the incidents of ownership, exexercisable either alone or in con- ercisable either alone or in conjuncjunction with any other person. For tion with any other person. For the the purposes of clause (A) of this purposes of clause (A) of this paraparagraph, if the decedent trans- graph, if the decedent transferred, ferred, by assignment or otherwise, by assignment or otherwise, a policy a policy of insurance, the amount of insurance, the amount paid dipaid directly or indirectly by the rectly or indirectly by the decedent decedent shall be reduced by an shall be reduced by an amount which amount which bears the same ratio bears the same ratio to the amount to the amount paid directly or in- paid directly or indirectly by the directly by the decedent as the con- decedent as the consideration in sideration in money or money's money or money's worth received worth received by the decedent for by the decedent for the transfer the transfer bears to the value of bears to the value of the policy at the policy at the time of the trans- the time of the transfer. For the fer. For the purposes of clause purposes of clause (B) of this (B) of this paragraph, the term paragraph, the term "incident of "incident of ownership" does not ownership" does not include a reversionary interest.

versionary interest.

include a re

Estates of Decedents
Dying during 1941

Sec. 811. (g) Proceeds of life insurance. To the extent of the amount receivable by the executor as insurance under policies taken out by the decedent upon his own life; and to the extent of the excess over $40,000 of the amount receivable by all other beneficiaries as insurance under policies taken out by the decedent upon his own life.

(Amendment of Sec. 403 (d), R. A. of 1942,

by H. J. R. 365 of Dec. 17, 1942)

Sec. 403 (d), R. A. of 1942, supra, was amended by H. J. R. 365 of Dec. 17, 1942, by striking out Jan. 1, 1943, wherever occurring therein and inserting in lieu thereof July 1, 1943.

(Amendment of Sec. 403 (d), R. A. of 1942,

by Sec. 10, Current Tax Payment
Act of 1943)

Sec. 403 (d), R. A. of 1942, was amended by Sec. 10, Current Tax Payment Act of 1943, approved June 9, 1943, as follows:

« iepriekšējāTurpināt »