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INTERNAL REVENUE CODE OF 1954
express terms of the policy or other instrument or by operation of law) only if the value of such reversionary interest exceeded 5 percent of the value of the policy immediately before the death of the decedent. As used in this paragraph, the term "reversionary interest" includes a possibility that the policy, or the proceeds of the policy, may return to the decedent or his estate, or may be subject to a power of disposition by him. The value of a reversionary interest at any time 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, pursuant to regulations prescribed by the Secretary or his delegate. In determining the value of a possibility that the policy or proceeds thereof may be subject to a power of disposition by the decedent, such possibility shall be valued as if it were a possibility that such policy or proceeds may return to the decedent or his estate. 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 N O T TREATED AS CONSIDERATION.—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." SEC. 2044. PRIOR INTERESTS.
Except as otherwise specifically 2042, inclusive, shall apply to the rights, powers, and relinquishment and described therein, whenever exercised, or relinquished.
provided therein, sections 2034 to transfers, trusts, estates, interests, of powers, as severally enumerated made, created, arising, existing,
PART IV—TAXABLE ESTATE Sec. Sec. Sec. Sec. Sec. Sec.
2051. 2052. 2053. 2054. 2055. 2056.
Definition of taxable estate. Exemption. Expenses, indebtedness, and taxes. Losses. Transfers for public, charitable, and religious uses. Bequests, etc., to surviving spouse.
SEC. 2051. DEFINITION OF TAXABLE ESTATE.
For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate the exemption and deductions provided for in this part.
§2042(2)
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