Page:United States Statutes at Large Volume 53 Part 1.djvu/134

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CODIFICATION OF INTERNAL REVENUE LAWS beneficiary of a value or aggregate value, at the time of such death, in excess of $5,000, then, to the extent of such excess, such relin- quishment or relinquishments shall, unless shown to the contrary, be deemed to have been made in contemplation of death within the meaning of this subchapter. (e) JOTINT ERESTS.-To the extent of the interest therein held as joint tenants by the decedent and any other person, or as tenants by the entirety by the decedent and spouse, or deposited, with any person carrying on the banking business, in their joint names and payable to either or the survivor, except such part thereof as may be shown to have originally belonged to such other person and never to have been received or acquired by the latter from the decedent for less than an adequate and full consideration in money or money's worth: Provided, That where such property or any part thereof, or part of the consideration with which such property was acquired, is shown to have been at any time acquired by such other person from the decedent for less than an adequate and full consideration in money or money's worth, there shall be excepted only such part of the value of such property as is proportionate to the consideration furnished by such other person: Provided further, That where any property has been acquired by gift, bequest, devise, or inheritance, as a tenancy by the entirety by the decedent and spouse, then to the extent of one-half of the value thereof, or, where so acquired by the decedent and any other person as joint tenants and their interests are not otherwise specified or fixed by law, then to the extent of the value of a fractional part to be determined by dividing the value of the property by the number of joint tenants. (f) PROPERTY PASSING UNDER GENERAL POWER OF APPOINTMENT.- To the extent of any property passing under a general power of ap- pointment exercised by the decedent (1) by will, or (2) by deed exe- cuted in contemplation of or intended to take effect in possession or enjoyment at or after his death, or (3) by deed under which he has re- tained for his life or any period not ascertainable without reference to his death or for any period which does not in fact end before his death (A) the possession or enjoyment of, or the right to the in- come from, the property, or (B) the right, either alone or in con- junction with any person, to designate the persons who shall possess or enjoy the ,rop)ertv or the income therefrom; except in case of a boIn fide sale for an adequate and full consideration in money or money's worth; and (g) PROCEEDS OF LI'E INSURANCE. -TO the extent of the amount receivable by the executor as insurance under policies taken out by the decedent upon his own life; and to the extent of the excess over $40,000 of the amount receivable by all other beneficiaries as insur- ance under policies taken out by the decedent upon his own life. (h) PRIOR INTERESTS. -Except as otherwise specifically provided therein, subsections (b), (c), (, ((e), (f), and (g) shall apply to the transfers, trusts, estates, interests, rights, powers, and relinquish- ment of powers, as severally enumerated and described therein, whether made, created, arising, existing, exercised, or relinquished before or after February 26, 1926. (i) TRANsFERS FOR INSUFFICIENT CONSIDERATION. - If any one of the transfers, trusts, interests, rights, or powers, enumerated and de- scribed in subsections (c), (d), and (f) 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. (j) OPTIONAL VALUATION.- If the executor so elects upon his return (if filed within the time prescribed by law or prescribed by the Com- 122