Inclusion of certain property in gross estate
Inclusion of gift tax on gifts made during 3 years before decedent’s death
The amount of the gross estate (determined without regard to this subsection) shall be increased by the amount of any tax paid under chapter 12 by the decedent or his estate on any gift made by the decedent or his spouse during the 3-year period ending on the date of the decedent’s death.
Other rules relating to transfers within 3 years of death
In general
Coordination with section 6166
An estate shall be treated as meeting the 35 percent of adjusted gross estate requirement of section 6166(a)(1) only if the estate meets such requirement both with and without the application of subsection (a).
Marital and small transfers
Paragraph (1) shall not apply to any transfer (other than a transfer with respect to a life insurance policy) made during a calendar year to any donee if the decedent was not required by section 6019 (other than by reason of section 6019(2)) to file any gift tax return for such year with respect to transfers to such donee.
Exception
Subsection (a) and paragraph (1) of subsection (c) shall not apply to any bona fide sale for an adequate and full consideration in money or money’s worth.
Treatment of certain transfers from revocable trusts
For purposes of this section and section 2038, any transfer from any portion of a trust during any period that such portion was treated under section 676 as owned by the decedent by reason of a power in the grantor (determined without regard to section 672(e)) shall be treated as a transfer made directly by the decedent.
Aug. 16, 1954, ch. 73668A Stat. 381Pub. L. 87–834, § 18(a)(2)(C)76 Stat. 1052Pub. L. 94–455, title XX, § 2001(a)(5)90 Stat. 1848Pub. L. 95–600, title VII, § 702(f)(1)92 Stat. 2930Pub. L. 97–34, title IV95 Stat. 301Pub. L. 97–448, title I, § 104(a)(9)96 Stat. 2381Pub. L. 105–34, title XIII, § 1310(a)111 Stat. 1043Pub. L. 106–554, § 1(a)(7) [title III, § 319(14)]114 Stat. 2763(, ; , , ; , , ; , , ; , §§ 403(b)(3)(B), 424(a), , , 317; , (d)(1)(A), (C), (2), , , 2383; , , ; , , , 2763A–646.)
Editorial Notes
Amendments
Pub. L. 106–554, § 1(a)(7) [title III, § 319(14)(A)]2000—Subsec. (c)(2). , substituted “subsection (a)” for “paragraph (1)”.
Pub. L. 106–554, § 1(a)(7) [title III, § 319(14)(B)]Subsec. (d). , inserted “and paragraph (1) of subsection (c)” after “Subsection (a)”.
Pub. L. 105–341997— amended section catchline and text generally. Prior to amendment, section consisted of subsecs. (a) to (d) relating to adjustments for gifts made within 3 years of decedent’s death.
Pub. L. 97–448, § 104(a)(9)1983—Subsec. (b)(2). , substituted “section 6019(2)” for “section 6019(a)(2)”.
Pub. L. 97–448, § 104(d)(2)Subsec. (d)(2). , inserted “of this subsection and paragraph (2) of subsection (b)” after “Paragraph (1)”, and struck out “2041,” after “2038,”.
Pub. L. 97–448, § 104(d)(1)(C)Subsec. (d)(3)(C), (D). , redesignated subpar. (D) as (C). Former subpar. (C), which referred to section 6166 (relating to extension of time for payment of estate tax where estate consists largely of interest in closely held business), was struck out.
Pub. L. 97–448, § 104(d)(1)(A)Subsec. (d)(4). , added par. (4).
Pub. L. 97–34, § 403(b)(3)(B)1981—Subsec. (b)(2). , inserted “(other than by reason of section 6019(a)(2))” after “section 6019”.
Pub. L. 97–34, § 424(a)Subsec. (d). , added subsec. (d).
Pub. L. 95–6001978—Subsec. (b). substituted in par. (2) provisions relating to gifts for which donee was not required by section 6019 to file gift tax returns for provisions relating to gifts excludable in computing taxable gifts by reason of section 2503(b) and inserted provisions following par. (2) relating to inapplicability of par. (2) to transfers respecting life insurance policies.
Pub. L. 94–4551976— substituted provisions covering adjustments for gifts made within 3 years of decedent’s death for provisions under which transfers by the decedent within 3 years of the decedent’s death were deemed to have been made in contemplation of death and included in the value of the gross estate.
Pub. L. 87–8341962—Subsec. (a). struck out provisions which excepted real property situated outside of the United States.
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Pub. L. 105–34, title XIII, § 1310(c)111 Stat. 1044
Effective Date of 1983 Amendment
Pub. L. 97–448Pub. L. 97–34section 109 of Pub. L. 97–448section 1 of this titleAmendment by effective, except as otherwise provided, as if it had been included in the provision of the Economic Recovery Tax Act of 1981, , to which such amendment relates, see , set out as a note under .
Effective Date of 1981 Amendment
section 403(b)(3)(B) of Pub. L. 97–34section 403(e) of Pub. L. 97–34section 2056 of this titleAmendment by applicable to estates of decedents dying after , see , set out as a note under .
Pub. L. 97–34, title IV, § 424(b)95 Stat. 317
Effective Date of 1978 Amendment
Pub. L. 95–600, title VII, § 702(f)(2)92 Stat. 2930
Effective Date of 1976 Amendment
Pub. L. 94–455section 2001(d)(1) of Pub. L. 94–455section 2001 of this titleAmendment by applicable to estates of decedents dying after , but not to transfers made before , see , set out as a note under .
Effective Date of 1962 Amendment
Pub. L. 87–834section 18(b) of Pub. L. 87–834section 2031 of this titleAmendment by applicable to estates of decedents dying after , except as otherwise provided, see , set out as a note under .
Transfers Made by Decedent During 1977; Election Available to Executor On or Before Due Date for Filing Estate Tax Return
Pub. L. 96–222, title I, § 107(a)(2)(F)94 Stat. 223Pub. L. 99–514, § 2100 Stat. 2095
“ ‘(2) to any gift to a donee made during 1977 to the extent of the amount of such gift which was excludable in computing taxable gifts by reason of section 2503(b) (relating to $3,000 annual exclusion for purposes of the gift tax) determined without regard to section 2513(a).’
If the executor elects the benefits of this subparagraph with respect to any estate, section 2035(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to adjustments for gifts made within 3 years of decedent’s death) shall be applied with respect to transfers made by the decedent during 1977 as if paragraph (2) of such section 2035(b) read as follows: