Article on Retained Rights Triggering IRC Section 2036

Leslie M. Levy recently published an Article entitled, Section 2036 of the Internal Revenue Code: A Practitioner’s Guide, 51 Real Prop. Tr. & Est. L.J. 75 (2016). Provided below is a synopsis of the Article:

This Article summarizes the current law and issues surrounding section 2036 of the Internal Revenue Code (Code). Specifically, this Article examines retained rights that trigger section 2036. It also addresses the issues surrounding the definition of a “bona fide sale” and the different tests employed by different courts. Lastly, this Article examines the definition of “adequate and full consideration in money or money’s worth” and two highly debated issues in that area. It concludes that understanding the Internal Revenue Service’s (Service) position on the issues involving section 2036 can reduce the likelihood of a Service audit and lead to substantial estate tax savings.