Sec. 811. (g) (3) Transfer not Sec. 811. (g) (3) Transfer not a gift. The amount receivable un- a gift.—The amount receivable under a policy of insurance trans-der a policy of insurance transferred, by assignment or otherwise, ferred, by assignment or otherwise, by the decedent shall not be in- by the decedent shall not be includible under paragraph (2) (A) cludible under paragraph (2) (A) if the transfer did not constitute a if the transfer did not constitute a gift, in whole or in part, under gift, in whole or in part, under Chapter 4, or, in case the transfer Chapter 4, or, in case the transfer was made at a time when Chapter was made at a time when Chapter 4 was not in effect, would not have 4 was not in effect, would not have constituted a gift, in whole or in constituted a gift, in whole or in part, under such chapter had it part, under such chapter had it been been in effect at such time. in effect at such time. Sec. 811. (g) (4) Community Sec. 811. (g) (4) Community property. For the purposes of this property.-For the purposes of this subsection, premiums or other con- subsection, premiums or other consideration paid with property held sideration paid with property held as community property by the in- as community property by the insured and surviving spouse under sured and surviving spouse under the law of any State, Territory, or the law of any State, Territory, or possession of the United States, or possession of the United States, or any foreign country, shall be con- any foreign country, shall be considered to have been paid by the in-sidered to have been paid by the insured, except such part thereof as sured, except such part thereof as may be shown to have been received may be shown to have been received as compensation for personal serv- as compensation for personal services actually rendered by the sur- ices actually rendered by the surviving spouse or derived originally viving spouse or derived originally from such compensation or from from such compensation or from separate property of the surviving separate property of the surviving spouse; and the term "incidents of spouse; and the term "incidents of ownership" includes incidents of ownership" includes incidents of ownership possessed by the dece- ownership possessed by the decedent dent at his death as manager of the at his death as manager of the comcommunity. munity. Sec. 811 (g), I. R. C., supra, amended to read as above by Sec. 404 (a), R. A. of 1942. Sec. 404 (c) of said Act makes amendment applicable to estates of decedents dying after Oct. 21, 1943; but in determining the proportion of the premiums or other consideration paid directly or indirectly by the decedent (but not the total premiums paid) the amount so paid by the decedent on or before January 10, 1941, shall be excluded if at no time after such date the decedent possessed an incident of ownership in the policy. Sec. 811 (g), I. R. C., supra, amended to read as above by Sec. 404 (a), R. A. of 1942. Sec. 404 (c) of said Act makes amendment applicable to estates of decedents dying after Oct. 21, 1943; but in determining the proportion of the premiums or other consideration paid directly or indirectly by the decedent (but not the total premiums paid) the amount so paid by the decedent on or before January 10, 1941, shall be excluded if at no time after such date the decedent possessed an incident of ownership in the policy. Sec. 811. (h) Prior interests. Estates of Decedents Sec. 811. (h) Prior interests.Sec. 811. (h) Prior interests.— Except as otherwise specifically Except as otherwise specifically Except as otherwise specifically provided therein, subsections (b), provided therein, subsections (b), provided therein, subsections (b), (c), (d), (e), (f), and (g) shall (c), (d), (e), (f), and (g) shall (c), (d), (e), (f), and (g) shall apply to the transfers, trusts, es- apply to the transfers, trusts, es- apply to the transfers, trusts, estates, interests, rights, powers, and tates, interests, rights, powers, and tates, interests, rights, powers, and relinquishment of powers, as sever- relinquishment of powers, as sever- relinquishment of powers, as severally enumerated and described ally enumerated and described ally enumerated and described therein, whether made, created, therein, whether made, created, therein, whether made, created, arising, existing, exercised, or re- arising, existing, exercised, or re- arising, existing, exercised, or relinquished before or after February linquished before or after February linquished before or after February 26, 1926. 26, 1926. 26, 1926. Except as otherwise specifically Except as otherwise specifically Estates of Decedents Dying on or before Feb. 10, 1939 Sec. 302. (h). See p. 490, Eighth Edition, Estates of Decedents Estates of Decedents Estates of Decedents Sec. 811. (i) Transfers for in- Sec. 811. (i) Transfers for in- Sec. 811. (i) Transfers for insufficient consideration. If any sufficient consideration. If any sufficient consideration. If any one of the transfers, trusts, inter- one of the transfers, trusts, inter- one of the transfers, trusts, interests, rights, or powers, enumerated ests, rights, or powers, enumerated ests, rights, or powers, enumerated and described in subsection (c), and described in subsections (c), and described in subsections (e), (d), and (f) is made, created, exer- (d), and (f) is made, created, exer- (d), and (f) is made, created, exercised, or relinquished for a consid- cised, or relinquished for a consid- cised, or relinquished for a consideration in money or money's worth, eration in money or money's worth, eration in money or money's worth, but is not a bona fide sale for an but is not a bona fide sale for an but is not a bona fide sale for an adequate and full consideration in adequate and full consideration in adequate and full consideration in money or money's worth, there money or money's worth, there money or money's worth, there shall be included in the gross estate shall be included in the gross estate shall be included in the gross estate only the excess of the fair market only the excess of the fair market only the excess of the fair market value at the time of death of the value at the time of death of the value at the time of death of the property otherwise to be included property otherwise to be included property otherwise to be included on account of such transaction, over on account of such transaction, over on account of such transaction, over the value of the consideration re- the value of the consideration re- the value of the consideration received therefor by the decedent. ceived therefor by the decedent. ceived therefor by the decedent. Sec. 811. (j) Optional valuation. Sec. 811. (j) Optional valuation. Sec. 811. (j) Optional valuation. -If the executor so elects upon his If the executor so elects upon his -If the executor so elects upon his return (if filed within the time pre- return (if filed within the time pre- return (if filed within the time prescribed by law or prescribed by the scribed by law or prescribed by the scribed by law or prescribed by the Commissioner in pursuance of Commissioner in pursuance of Commissioner in pursuance of law), the value of the gross estate law), the value of the gross estate law), the value of the gross estate shall be determined by valuing all shall be determined by valuing all shall be determined by valuing all the property included therein on the property included therein on the property included therein on the date of the decedent's death as the date of the decedent's death as the date of the decedent's death as of the date one year after the de- of the date one year after the de- of the date one year after the decedent's death, except that (1) cedent's death, except that (1) cedent's death, except that (1) property included in the gross es- property included in the gross es- property included in the gross estate on the date of death and, tate on the date of death and, tate on the date of death and, within one year after the decedent's within one year after the decedent's within one year after the decedent's death, distributed by the executor death, distributed by the executor death, distributed by the executor (or, in the case of property in- (or, in the case of property in- (or, in the case of property included in the gross estate under cluded in the gross estate under cluded in the gross estate under subsection (c), (d), or (f) of this subsection (c), (d), or (f) of this subsection (c), (d), or (f) of this section, distributed by the trustee section, distributed by the trustee section, distributed by the trustee under the instrument of transfer), under the instrument of transfer), under the instrument of transfer), or sold, exchanged, or otherwise or sold, exchanged, or otherwise or sold, exchanged, or otherwise disposed of, shall be included at its disposed of, shall be included at its disposed of, shall be included at its value as of the time of such distri- value as of the time of such distri- value as of the time of such distribution, sale, exchange, or other dis-bution, sale, exchange, or other dis-bution, sale, exchange, or other disposition, whichever first occurs, position, whichever first occurs, position, whichever first occurs, instead of its value as of the date instead of its value as of the date instead of its value as of the date one year after the decedent's death, one year after the decedent's death, one year after the decedent's death, and (2) any interest or estate and (2) any interest or estate and (2) any interest or estate which is affected by mere lapse of which is affected by mere lapse of which is affected by mere lapse of time shall be included at its value time shall be included at its value time shall be included at its value as of the time of death (instead of as of the time of death (instead of as of the time of death (instead of the later date) with adjustment for the later date) with adjustment for the later date) with adjustment for any difference in its value as of the any difference in its value as of the any difference in its value as of the later date not due to mere lapse of later date not due to mere lapse of later date not due to mere lapse of time. No deduction under this sub- time. No deduction under this sub-time. No deduction under this subchapter of any item shall be al- chapter of any item shall be al- chapter of any item shall be allowed if allowance for such item is lowed if allowance for such item is lowed if allowance for such item is in effect given by the valuation un-in effect given by the valuation un- in effect given by the valuation under this subsection. Wherever in der this subsection. Wherever in der this subsection. Wherever in any other subsection or section of any other subsection or section of any other subsection or section of this chapter, reference is made to this chapter, reference is made to this chapter, reference is made to the value of property at the time the value of property at the time the value of property at the time of the decedent's death, such refer- of the decedent's death, such reference shall be deemed to refer to the value of such property used in determining the value of the gross es ence shall be deemed to refer to the of the decedent's death, such reference shall be deemed to refer to the value of such property used in determining the value of the gross es Estates of Decedents Sec. 811. (i) Transfers for insufficient consideration. If any one of the transfers, trusts, interests, rights, or powers, enumerated and described in subsections (c), (d), and (f) 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.. Estates of Decedents Sec. 811. (i) Transfers for insufficient consideration. If any one of the transfers, trusts, interests, rights, or powers, enumerated and described in subsections (c), (d), and (f) 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. Sec. 811. (j) Optional valuation. Sec. 811. (j) Optional valuation. -If the executor so elects upon his -If the executor so elects upon his return (if filed within the time pre- return (if filed within the time prescribed by law or prescribed by the scribed by law or prescribed by the Commissioner in pursuance of Commissioner in pursuance of law), the value of the gross estate law), the value of the gross estate shall be determined by valuing all shall be determined by valuing all the property included therein on the property included therein on the date of the decedent's death as the date of the decedent's death as of the date one year after the de- of the date one year after the decedent's death, except that (1) cedent's death, except that (1) property included in the gross es- property included in the gross estate on the date of death and, tate on the date of death and, within one year after the decedent's within one year after the decedent's death, distributed by the executor death, distributed by the executor (or, in the case of property in- (or, in the case of property included in the gross estate under cluded in the gross estate under subsection (e), (d), or (f) of this subsection (c), (d), or (f) of this section, distributed by the trustee section, distributed by the trustee under the instrument of transfer), under the instrument of transfer), or sold, exchanged, or otherwise or sold, exchanged, or otherwise disposed of, shall be included at its disposed of, shall be included at its value as of the time of such distri- value as of the time of such distribution, sale, exchange, or other dis-bution, sale, exchange, or other disposition, whichever first occurs, position, whichever first occurs, instead of its value as of the date instead of its value as of the date one year after the decedent's death, one year after the decedent's death, and (2) any interest or estate and (2) any interest or estate which is affected by mere lapse of which is affected by mere lapse of time shall be included at its value time shall be included at its value as of the time of death (instead of as of the time of death (instead of the later date) with adjustment for the later date) with adjustment for any difference in its value as of the any difference in its value as of the later date not due to mere lapse of later date not due to mere lapse of time. No deduction under this sub-time. No deduction under this subchapter of any item shall be al- chapter of any item shall be allowed if allowance for such item is lowed if allowance for such item is in effect given by the valuation un- in effect given by the valuation under this subsection. Wherever in der this subsection. Wherever in any other subsection or section of any other subsection or section of this chapter, reference is made to this chapter, reference is made to the value of property at the time the value of property at the time of the decedent's death, such reference shall be deemed to refer to the value of such property used in determining the value of the gross es of the decedent's death, such refer- Estates of Decedents Dying on or before Feb. 10, 1939 Sec. 302 (i). See p. 490, Eighth Edition. Sec. 302. (j). See p. 492, Eighth Edition. |