U.S. Code » Title 26 » Subtitle Subtitle B— Estate and Gift Taxes › Chapter CHAPTER 11— ESTATE TAX › Subchapter Subchapter A— Estates of Citizens or Residents › Part PART III— GROSS ESTATE

26 U.S.C. § 2037

Transfers taking effect at death

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 26 CasesGoogle Scholar
(a) General ruleThe 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 after September 7, 1916, 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, if—(1) possession or enjoyment of the property can, through ownership of such interest, be obtained only by surviving the decedent, and(2) the decedent has retained a reversionary interest in the property (but in the case of a transfer made before October 8, 1949, only if such reversionary interest arose by the express terms of the instrument of transfer), and the value of such reversionary interest immediately before the death of the decedent exceeds 5 percent of the value of such property.(b) Special rulesFor purposes of this section, the term “reversionary interest” includes a possibility that property transferred by the decedent—(1) may return to him or his estate, or(2) may be subject to a power of disposition by him,but such term does not include a possibility that the income alone from such property may return to him or become subject to a power of disposition by him. The value of a reversionary interest immediately before the death of the decedent shall be determined (without regard to the fact of the decedent’s death) by usual methods of valuation, including the use of tables of mortality and actuarial principles, under regulations prescribed by the Secretary. In determining the value of a possibility that property may be subject to a power of disposition by the decedent, such possibility shall be valued as if it were a possibility that such property may return to the decedent or his estate. Notwithstanding the foregoing, an interest so transferred shall not be included in the decedent’s gross estate under this section if possession or enjoyment of the property could have been obtained by any beneficiary during the decedent’s life through the exercise of a general power of appointment (as defined in section 2041) which in fact was exercisable immediately before the decedent’s death.(Aug. 16, 1954, ch. 736, 68A Stat. 382; Pub. L. 87–834, § 18(a)(2)(E), Oct. 16, 1962, 76 Stat. 1052; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)Editorial NotesAmendments

1976—Subsec. (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

1962—Subsec. (a). Pub. L. 87–834 struck out provisions which excepted real property situated outside of the United States.

Statutory Notes and Related SubsidiariesEffective Date of 1962 Amendment

Amendment by Pub. L. 87–834 applicable to estates of decedents dying after Oct. 16, 1962, except as otherwise provided, see section 18(b) of Pub. L. 87–834, set out as a note under section 2031 of this title.

Notes of Decisions
Cited in 11 cases, 1960–1991 · leading case: Mfrs. Hanover Trust Co., as of the Est. of Charlotte C. Wallace v. United States, 775 F.2d 459 (2d Cir. 1985).
Sort: Relevance Newest Treatment
Mfrs. Hanover Trust Co., as of the Est. of Charlotte C. Wallace v. United States, 775 F.2d 459 (2d Cir. 1985). · cites it 3× “The IRS, following regulations in effect from 1970 to 1983, used gender-based mortality tables to calculate the estate tax owed by plaintiff Manufacturers Hanover Trust Company, as executor of the estate of Charlotte C.”
Est. of Bogley v. United States, 206 Ct. Cl. 695 (Ct. Cl. 1975). · cites it 2× “As to the Prince Georges payments, defendant says they are not includable in the decedent’s estate under Section 2033 because they were payable to his wife after his death, but that since his wife survived him, he made a transfer of his rever-sionary interest to her and that by…”
Amanda York Beaty & Nancie York Gunter v. United States, 937 F.2d 288 (6th Cir. 1991). “§ 2036 (transfers with a retained life estate); 26 U.S.C. § 2037 (transfers that take effect at death); 26 U.”
Kent Robinson v. The United States of Am., 632 F.2d 822 (9th Cir. 1980). · cites it 3× “The additional tax liability was assessed under 26 U.S.C. § 2037 (1976) 1 and resulted from the inclusion in Decedent’s taxable estate of the value of a trust created by her on February 11, 1920, in which she reserved to herself a conditional testamentary power of appointment.”
In Re Est. of Harry Fried, Deceased. Ethel Fried v. Comm'r of Internal Revenue, 445 F.2d 979 (2d Cir. 1971). “The Commissioner relied upon 26 U.S.C. § 2037 , Internal Revenue Code of 1954, which provides: (a) General Rule.”
United States Nat. Bank of Portland v. United States, 188 F. Supp. 332 (D. Or. 1960). “6 The alternative defense of the defendant which is based on 26 U.S.C. § 2037 is without merit. The decedent retained no reversionary interest in the property.”
Est. of Moore, 29 Cal. App. 3d 481 (Cal. Ct. App. 1972). “The answer would be clear if we dealt with federal law, under which at the present time the existence of a reversionary interest in favor of the settlor of a trust will not make the transfer in trust taxable, lacking other independent taxable features, unless the value of the…”
Robinson v. United States, 454 F. Supp. 1160 (N.D. Cal. 1978). · cites it 2× “The Issues The tax at issue was levied and collected under § 2037 of the Internal Revenue Code of 1954, 26 U.S.C. § 2037 .. Section 2037 declares that the gross estate of a decedent shall include the value of property transferred by the decedent during her lifetime, if…”
Flournoy v. Crocker-Citizens Nat'l Bank, 29 Cal. App. 3d 481 (Cal. Ct. App. 1972). “The answer would be clear if we dealt with federal law, under which at the present time the existence of a reversionary interest in, favor of the settlor of a trust will not make the transfer in trust taxable, lacking other independent taxable features, unless the value of the…”
Richardson v. United States, 190 F. Supp. 369 (D. Wyo. 1961). “26 U.S.C.A. § 2037 . Decedent did not retain a reversionary interest in the property transferred which would arise by the express terms of the instrument of transfer.”
State, Indiana Dep't of State Revenue Inheritance Tax Div. v. Daley, 434 N.E.2d 149 (Ind. Ct. App. 1982). “at 576 -77: “The answer would be clear if we dealt with federal law, under which at the present time the existence of a reversion-ary interest in favor of the settlor of a trust will not make the transfer in trust taxable lacking other independent taxable features, unless the…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.