Internal Revenue Code:Sec. 2043. Transfers for insufficient consideration

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 11 - ESTATE TAX
        Subchapter A - Estates of Citizens or Residents
         PART III - GROSS ESTATE
       

Statute

    Sec. 2043. Transfers for insufficient consideration
 
    (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.
    (b) Marital rights not treated as consideration
      (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''.
      (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.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 388; Pub. L. 98-369, div.  A,
    title IV, Sec. 425(a)(1), July 18, 1984, 98 Stat. 803.)
 

Miscellaneous

                                 AMENDMENTS
      1984 - Subsec. (b). Pub. L. 98-369 amended subsec. (b) generally,
    designating existing provisions as par. (1) and adding par. (2).
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Section 425(c)(1) of Pub. L. 98-369 provided that: ''The
    amendments made by subsection (a) (amending this section and
    section 2053 of this title) shall apply to estates of decedents
    dying after the date of the enactment of this Act (July 18,
    1984).''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 2053 of this title.