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Section 2036 Estate Controversies of Tenants in Common InterestsSection 2036 Estate Controversies of Tenants in Common Interests
For estate tax purposes, Internal Revenue Code Section 2036(a) includes in a decedent's gross estate the value of certain property transferred during life.1 IRC Section 2036 generally applies when a taxpayer retains rights to the property transferred, the property's income2 or the right to designate others who can receive the rights to the property or its income.3 The Internal Revenue Service frequently
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Dennis I. Leonard & Alison Merino
For estate tax purposes, Internal Revenue Code Section 2036(a) includes in a decedent's gross estate the value of certain property transferred during life.1 IRC Section 2036 generally applies when a taxpayer retains rights to the property transferred, the property's income2 or the right to designate others who can receive the rights to the property or its income.3 The Internal Revenue Service frequently uses Section 2036 to include in a taxpayer's gross estate property that was transferred to legal entities — traditionally irrevocable trusts,4 but especially family limited partnerships5 and limited liability companies6 (collectively FLPs).
Section 2036 also applies to property transfers resulting in a tena...
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