80TH CONG. , 2 D SESS.-CH. 168-APR. 2, 1948 estate of any decedent dying after December 31, 1947, and on or before the date of the enactment of this Act shall not exceed the taxes which would have been imposed under such chapter 3 upon such transfer if this section had not been enacted. Subpart 2-Marital Deduction for Bequests, Etc., to Spouse SEC. 361. MARITAL DEDUCTION. (a) Section 812 of the Internal Revenue Code (relating to deduc- tions in computing net estate in the case of a citizen or resident of the United States) is hereby amended by adding at the end thereof a new subsection to read as follows: "(e) BEQUESTS, ETC., TO SURVIVING SPOUSE.- "(1) ALLOWANCE OF MARITAL DEDUCTION.- "(A) In General. - An amount equal to the value of any interest in property which passes or has passed from the decedent to his surviving spouse, but only to the extent that such interest is included in determining the value of the gross estate. "(B) Life Estate or Other Terminable Interest.- Where, upon the lapse of time, upon the occurrence of an event or contingency, or upon the failure of an event or contingency to occur, such interest passing to the surviving spouse will ter- minate or fail, no deduction shall be allowed with respect to such interest- "(i) if an interest in such property passes or has passed (for less than an adequate and full consideration in money or money's worth) from the decedent to any person other than such surviving spouse (or the estate of such spouse); and "(ii) if by reason of such passing such person (or his heirs or assigns) may possess or enjoy any part of such property after such termination or failure of the interest so passing to the surviving spouse; and no deduction shall be allowed with respect to such interest (even if such deduction is not disallowed under clauses (i) and (ii))- "(iii) if such interest is to be acquired for the surviving spouse, pursuant to directions of the decedent, by his executor or by the trustee of a trust. For the purposes of this subparagraph, an interest shall not be considered as an interest which will terminate or fail merely because it is the ownership of a bond, note, or similar contractual obligation, the discharge of which would not have the effect of an annuity for life or for a term. "(C) Interest In Unidentified Assets. -Where the assets (included in the decedent's gross estate) out of which, or the proceeds of which, an interest passing to the surviving spouse may be satisfied include a particular asset or assets with respect to which no deduction would be allowed if such asset or assets passed from the decedent to such spouse, then the value of such iterest passing to such spouse shall, for the purposes of sub- paragraph (A), be reduced by the aggregate value of such particular assets. " (D) Interest of Spouse Conditional on Survival For Lim- ited Period.-For the purposes of subparagraph (B) an inter- est passing to the surviving spouse shall not be considered as 53 Stat. 123. 26U..C.1812; Supp. I, §812. Post, pp. 121 , 1214 . 117 62 STAT.]
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