102 STAT. 3638
PUBLIC LAW 100-647—NOV. 10, 1988
"SEC. 2207B. RIGHT OF RECOVERY INTEREST.
WHERE
DECEDENT
RETAINED
"(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 BY WILL.—Paragraph (1)
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shall not apply if the decedent otherwise directs in a provision of his will (or a revocable trust) speciHcally referring to this section. "(b) 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 2036(c)(4), such person shall be entitled to recover from the original transferee (as defined in section 2036(c)(4)(C)(ii)) the amount which bears the same ratio to the total tax for such year under chapter 12 as— "(1) the value of such property for purposes of chapter 12, bears to "(2) the total amount of the taxable gifts for such year. "(c) 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. "(d) PENALTIES AND INTEREST.—In the case of penalties and interest attributable to the additional taxes described in subsections (a) and (b)> rules similar to the rules of subsections (a), (b), and (c) shall apply. "(e) 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)." (2) CDNFORMING AMENDMENT.—The table of sections for subchapter C of chapter 11 of the 1986 Code is amended by inserting after the item relating to section 2207A the following new item: "Sec. 2207B. Right of recovery where decedent retained interest." (g) T R E A T M ENT OF CtoNSiDERATON.—
(1) Paragraph (2) of section 2036(c) of the 1986 Code is amended to read as follows: "(2) SPECIAL RULES FOR CONSIDERATION FURNISHED BY FAMILY
"(A) IN GENERAL.—The exception contained in subsection (a) for a bona fide sale shall not apply to a transfer described in paragraph (I) if such transfer is to a member of the transferor's family. "(B) TREATMENT OF CONSIDERATION.—
(i) IN GENERAL.—In the case of a transfer described in paragraph (I), if— "(I) a member of the transferor's family provides consideration in money or money's worth for such member's interest in the enterprise, and
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