ESTATE PLANNING - ESTATE TAXES LAW
TITLE 26 - Internal Revenue Code
Subtitle C - Estate, Gift Taxes and Miscellaneou
-MISC1- Sec.
2201. Members of the Armed Forces dying in combat zone or by reasonof combat-zone-incurred wounds, etc.
(2202. Repealed.)
2203. Definition of executor.
2206. Liability of life insurance beneficiaries.
2207. Liability of recipient of property over which decedent had
power of appointment.
2207A. Right of recovery in the case of certain marital deduction
property.
2207B. Right of recovery where decedent retained interest.
2208. Certain residents of possessions considered citizens of the
United States.
2209. Certain residents of possessions considered nonresidents not citizens of the United States.
Subtitle C - Estate, Gift Taxes and Miscellaneous
Sec. 2201.
Members of the Armed Forces dying in combat zone or by
reason of
combat-zone-incurred wounds, etc.
-STATUTE-
The additional estate tax
as defined in section 2011(d) shall not
apply to the transfer of the taxable
estate of a citizen or
resident of the United States dying while in active
service as a
member of the Armed Forces of the United States, if such
decedent -
(1) was killed in action while serving in a combat zone,
as
determined under section 112(c); or
(2) died as a result of wounds,
disease, or injury suffered,
while serving in a combat zone (as determined
under section
112(c) (FOOTNOTE 1) , and while in line of duty, by reason of
a
hazard to which he was subjected as an incident of such
service.
(FOOTNOTE 1) So in original. Probably should be followed by
a
closing parenthesis.
(Sec. 2202. Repealed. Pub. L. 94-455, title XIX, Sec.
1902(a)(8),
Oct. 4, 1976, 90 Stat. 1805)
-MISC1-
Section, acts Aug.
16, 1954, ch. 736, 68A Stat. 401; June 25,
1959, Pub. L. 86-70, Sec. 22(a),
73 Stat. 146; July 12, 1960, Pub.
L. 86-624, Sec. 18(b), 74 Stat. 416,
related to the presumption
that missionaries duly commissioned and serving
under boards of
foreign missions are residents of the State or the District
of
Columbia wherein they resided at the time of their commission
and
departure for service.
EFFECTIVE DATE OF REPEAL
Repeal applicable
to estates of decedents dying after Oct. 4,
1976, see section 1902(c)(1) of
Pub. L. 94-455, set out as an
Effective Date of 1976 Amendment note under
section 2011 of this
title.
Sec. 2203. Definition of
executor
-STATUTE-
The term ''executor'' wherever it is used in
this title in
connection with the estate tax imposed by this chapter means
the
executor or administrator of the decedent, or, if there is no
executor
or administrator appointed, qualified, and acting within
the United States,
then any person in actual or constructive
possession of any property of the
decedent.
Sec. 2204. Discharge of fiduciary from personal
liability
-STATUTE-
(a) General rule
If the executor makes
written application to the Secretary for
determination of the amount of the
tax and discharge from personal
liability therefor, the Secretary (as soon as
possible, and in any
event within 9 months after the making of such
application, or, if
the application is made before the return is filed, then
within 9
months after the return is filed, but not after the expiration
of
the period prescribed for the assessment of the tax in section
6501)
shall notify the executor of the amount of the tax. The
executor, on payment
of the amount of which he is notified (other
than any amount the time for
payment of which is extended under
sections 6161, 6163, or 6166), and on
furnishing any bond which may
be required for any amount for which the time
for payment is
extended, shall be discharged from personal liability for
any
deficiency in tax thereafter found to be due and shall be entitled
to
a receipt or writing showing such discharge.
(b) Fiduciary other than the
executor
If a fiduciary (not including a fiduciary in respect of
the
estate of a nonresident decedent) other than the executor
makes
written application to the Secretary for determination of the
amount
of any estate tax for which the fiduciary may be personally
liable, and for
discharge from personal liability therefor, the
Secretary upon the discharge
of the executor from personal
liability under subsection (a), or upon the
expiration of 6 months
after the making of such application by the fiduciary,
if later,
shall notify the fiduciary (1) of the amount of such tax for
which
it has been determined the fiduciary is liable, or (2) that it
has
been determined that the fiduciary is not liable for any such
tax.
Such application shall be accompanied by a copy of the instrument,
if
any, under which such fiduciary is acting, a description of the
property held
by the fiduciary, and such other information for
purposes of carrying out the
provisions of this section as the
Secretary may require by regulations. On
payment of the amount of
such tax for which it has been determined the
fiduciary is liable
(other than any amount the time for payment of which has
been
extended under section 6161, 6163, or 6166), and on furnishing
any
bond which may be required for any amount for which the time
for
payment has been extended, or on receipt by him of notification of
a
determination that he is not liable for any such tax, the
fiduciary shall be
discharged from personal liability for any
deficiency in such tax thereafter
found to be due and shall be
entitled to a receipt or writing evidencing such
discharge.
(c) Special lien under section 6324A
For purposes of the second
sentence of subsection (a) and the
last sentence of subsection (b), an
agreement which meets the
requirements of section 6324A (relating to special
lien for estate
tax deferred under section 6166) shall be treated as the
furnishing
of bond with respect to the amount for which the time for
payment
has been extended under section 6166.
(d) Good faith reliance on
gift tax returns
If the executor in good faith relies on gift tax
returns
furnished under section 6103(e)(3) for determining the
decedent's
adjusted taxable gifts, the executor shall be discharged
from
personal liability with respect to any deficiency of the tax
imposed
by this chapter which is attributable to adjusted taxable
gifts which
-
(1) are made more than 3 years before the date of the
decedent's death,
and
(2) are not shown on such returns.
Sec. 2205. Reimbursement out of
estate
-STATUTE-
If the tax or any part thereof is paid by, or
collected out of,
that part of the estate passing to or in the possession of
any
person other than the executor in his capacity as such, such
person
shall be entitled to reimbursement out of any part of the
estate
still undistributed or by a just and equitable contribution by
the
persons whose interest in the estate of the decedent would have
been
reduced if the tax had been paid before the distribution of
the estate or
whose interest is subject to equal or prior liability
for the payment of
taxes, debts, or other charges against the
estate, it being the purpose and
intent of this chapter that so far
as is practicable and unless otherwise
directed by the will of the
decedent the tax shall be paid out of the estate
before its
distribution.
Sec. 2206. Liability of life insurance
beneficiaries
-STATUTE-
Unless the decedent directs otherwise in
his will, if any part of
the gross estate on which tax has been paid consists
of proceeds of
policies of insurance on the life of the decedent receivable
by a
beneficiary other than the executor, the executor shall be
entitled
to recover from such beneficiary such portion of the total tax
paid
as the proceeds of such policies bear to the taxable estate. If
there
is more than one such beneficiary, the executor shall be
entitled to recover
from such beneficiaries in the same ratio. In
the case of such proceeds
receivable by the surviving spouse of the
decedent for which a deduction is
allowed under section 2056
(relating to marital deduction), this section
shall not apply to
such proceeds except as to the amount thereof in excess of
the
aggregate amount of the marital deductions allowed under
such
section.
Sec. 2207. Liability of recipient of property over which
decedent
had power of appointment
-STATUTE-
Unless the decedent
directs otherwise in his will, if any part of
the gross estate on which the
tax has been paid consists of the
value of property included in the gross
estate under section 2041,
the executor shall be entitled to recover from the
person receiving
such property by reason of the exercise, nonexercise, or
release of
a power of appointment such portion of the total tax paid as
the
value of such property bears to the taxable estate. If there is
more
than one such person, the executor shall be entitled to
recover from such
persons in the same ratio. In the case of such
property received by the
surviving spouse of the decedent for which
a deduction is allowed under
section 2056 (relating to marital
deduction), this section shall not apply to
such property except as
to the value thereof reduced by an amount equal to
the excess of
the aggregate amount of the marital deductions allowed
under
section 2056 over the amount of proceeds of insurance upon the
life
of the decedent receivable by the surviving spouse for which
proceeds
a marital deduction is allowed under such section.
Sec. 2207A. Right of recovery in the case of certain
marital
deduction property
-STATUTE-
(a) Recovery with respect
to estate tax
(1) In general
If any part of the gross estate consists of
property the value
of which is includible in the gross estate by reason of
section
2044 (relating to certain property for which marital deduction
was
previously allowed), the decedent's estate shall be entitled
to recover from
the person receiving the property the amount by
which -
(A) the total tax
under this chapter which has been paid,
exceeds
(B) the total tax under
this chapter which would have been
payable if the value of such property had
not been included in
the gross estate.
(2) Decedent may otherwise
direct
Paragraph (1) shall not apply with respect to any property to
the
extent that the decedent in his will (or a revocable trust)
specifically
indicates an intent to waive any right of recovery
under this subchapter with
respect to such property.
(b) Recovery with respect to gift tax
If for any
calendar year tax is paid under chapter 12 with
respect to any person by
reason of property treated as transferred
by such person under section 2519,
such person shall be entitled to
recover from the person receiving the
property the amount by which
-
(1) the total tax for such year under
chapter 12, exceeds
(2) the total tax which would have been payable under
such
chapter for such year if the value of such property had not
been
taken into account for purposes of chapter 12.
(c) More than one
recipient of property
For purposes of this section, if there is more than one
person
receiving the property, the right of recovery shall be against
each
such person.
(d) Taxes and interest
In the case of penalties and
interest attributable to additional
taxes described in subsections (a) and
(b), rules similar to
subsections (a), (b), and (c) shall apply.
Sec. 2207B. Right of recovery where decedent retained
interest
-STATUTE-
(a) Estate tax
(1) In general
If any part
of the gross estate on which tax has been paid
consists of the value of
property included in the gross estate by
reason of section 2036 (relating to
transfers with retained life
estate), the decedent's estate shall be entitled
to recover from
the person receiving the property the amount which bears the
same
ratio to the total tax under this chapter which has been paid
as
-
(A) the value of such property, bears to
(B) the taxable
estate.
(2) Decedent may otherwise direct
Paragraph (1) shall not apply
with respect to any property to
the extent that the decedent in his will (or
a revocable trust)
specifically indicates an intent to waive any right of
recovery
under this subchapter with respect to such property.
(b) More
than one recipient
For purposes of this section, if there is more than 1
person
receiving the property, the right of recovery shall be against
each
such person.
(c) Penalties and interest
In the case of penalties
and interest attributable to the
additional taxes described in subsection
(a), rules similar to the
rules of subsections (a) and (b) shall
apply.
(d) No right of recovery against charitable remainder trusts
No
person shall be entitled to recover any amount by reason of
this section from
a trust to which section 664 applies (determined
without regard to this
section).
Sec. 2208. Certain residents of possessions considered
citizens of
the United States
-STATUTE-
A decedent who was a
citizen of the United States and a resident
of a possession thereof at the
time of his death shall, for
purposes of the tax imposed by this chapter, be
considered a
''citizen'' of the United States within the meaning of that
term
wherever used in this title unless he acquired his United
States
citizenship solely by reason of (1) his being a citizen of
such
possession of the United States, or (2) his birth or residence
within
such possession of the United States.
Sec. 2209. Certain residents of possessions considered
nonresidents not citizens of the United States
-STATUTE-
A
decedent who was a citizen of the United States and a resident
of a
possession thereof at the time of his death shall, for
purposes of the tax
imposed by this chapter, be considered a
''nonresident not a citizen of the
United States'' within the
meaning of that term wherever used in this title,
but only if such
person acquired his United States citizenship solely by
reason of
(1) his being a citizen of such possession of the United States,
or
(2) his birth or residence within such possession of the
United
States.
-HEAD-
(Sec. 2210. Repealed. Pub. L. 101-239, title VII, Sec.
7304(b)(1),
Dec. 19, 1989, 103 Stat. 2353)
-MISC1-
Section, added
Pub. L. 98-369, div. A, title V, Sec. 544(a),
July 18, 1984, 98 Stat. 892;
amended Pub. L. 99-514, title XVIII,
Sec. 1854(d)(1)(A), (2)-(6), 1899A(37),
Oct. 22, 1986, 100 Stat.
2879, 2880, 2960, related to liability for payment
in case of
transfer of employer securities to an employee stock ownership
plan
or a worker-owned cooperative.
EFFECTIVE DATE OF REPEAL
Repeal
applicable to estates of decedents dying after July 12,
1989, see section
7304(b)(3) of Pub. L. 101-239, set out as an
Effective Date of 1989 Amendment
note under section 2002 of this
title.
