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Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 11— ESTATE TAX · Subchapter A— Estates of Citizens or Residents · § 2036

§ 2036. Transfers with retained life estate

1,419 words·~6 min read·/usc/title-26/section-2036

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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 the income from, the property, or
(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.
(b)Voting rights
(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.
(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).
(Aug. 16, 1954, ch. 736, 68A Stat. 382; Pub. L. 87–834, § 18(a)(2)(D), Oct. 16, 1962, 76 Stat. 1052; Pub. L. 94–455, title XX, § 2009(a), Oct. 4, 1976, 90 Stat. 1893; Pub. L. 95–600, title VII, § 702(i)(1), (2), Nov. 6, 1978, 92 Stat. 2931; Pub. L. 100–203, title X, § 10402(a), Dec. 22, 1987, 101 Stat. 1330–431; Pub. L. 100–647, title III, § 3031(a)(1), (b)–(e), (g), Nov. 10, 1988, 102 Stat. 3634–3638; Pub. L. 101–508, title XI, § 11601(a), Nov. 5, 1990, 104 Stat. 1388–490.)
Connections15 cite this · traces to 3
40 references not yet in our index
  • 46 Stat. 1516
  • Aug. 16, 1954, ch. 736
  • 68A Stat. 382
  • Pub. L. 87–834, § 18(a)(2)(D)
  • 76 Stat. 1052
  • Pub. L. 94–455, title XX, § 2009(a)
  • 90 Stat. 1893
  • Pub. L. 95–600, title VII, § 702(i)(1)
  • 92 Stat. 2931
  • Pub. L. 100–203, title X, § 10402(a)
  • 101 Stat. 1330–431
  • Pub. L. 100–647, title III, § 3031(a)(1)
  • 102 Stat. 3634–3638
  • Pub. L. 101–508, title XI, § 11601(a)
  • 104 Stat. 1388–490
  • Pub. L. 101–508
  • Pub. L. 100–647, § 3031(e)
  • Pub. L. 100–647, § 3031(g)(1)
  • Pub. L. 100–647, § 3031(d)
  • Pub. L. 100–647, § 3031(a)(1)
  • Pub. L. 100–647, § 3031(g)(2)
  • Pub. L. 100–647, § 3031(b)
  • Pub. L. 100–647, § 3031(b)[(c)]
  • Pub. L. 100–203
  • Pub. L. 95–600, § 702(i)(2)
  • Pub. L. 95–600, § 702(i)(1)
  • Pub. L. 94–455
  • Pub. L. 87–834
  • Pub. L. 101–508, title XI, § 11601(c)
  • 104 Stat. 1388–491
  • Pub. L. 100–647, title III, § 3031(h)
  • 102 Stat. 3639
  • Pub. L. 100–203, title X
  • Pub. L. 100–203, title X, § 10402(b)
  • 101 Stat. 1330–432
  • section 3031(h)(5) of Pub. L. 100–647
  • Pub. L. 95–600, title VII, § 702(i)(3)
  • Pub. L. 94–455, title XX, § 2009(e)(1)
  • 90 Stat. 1896
  • section 18(b) of Pub. L. 87–834
Citation graph
cites case law
§ 2036
Transfers with retained life estate
Stat.×8
U.S.C.×7
U.S.C.§ 2207B
U.S.C.§ 2501
U.S.C.§ 2031
Stat.46 Stat. 1516
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 382
Pub. L.Pub. L. 87–834, § 18(a)(2)(D)
Stat.76 Stat. 1052
Cites 43 · showing 8Cited by 15 across 2 sources
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