[Code of Federal Regulations] [Title 26, Volume 14] [Revised as of January 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR20.0-1] [Page 233-237] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 20_ESTATE TAX; ESTATES OF DECEDENTS DYING AFTER AUGUST 16, 1954--Table of Contents Sec. 20.0-1 Introduction. Introduction Sec. 20.0-1 Introduction. 20.0-2 General description of tax. Estates of Citizens or Residents Tax Imposed 20.2001-1 Valuation of adjusted taxable gifts and section 2701(d) taxable events. 20.2002-1 Liability for payment of tax. Credits Against Tax 20.2011-1 Credit for State death taxes. 20.2011-2 Limitation on credit if a deduction for State death taxes is allowed under section 2053(d). 20.2012-1 Credit for gift tax. 20.2013-1 Credit for tax on prior transfers. 20.2013-2 ``First limitation''. 20.2013-3 ``Second limitation''. 20.2013-4 Valuation of property transferred. 20.2013-5 ``Property'' and ``transfer'' defined. 20.2013-6 Examples. 20.2014-1 Credit for foreign death taxes. 20.2014-2 ``First limitation''. 20.2014-3 ``Second limitation''. 20.2014-4 Application of credit in cases involving a death tax convention. 20.2014-5 Proof of credit. 20.2014-6 Period of limitations on credit. 20.2014-7 Limitation on credit if a deduction for foreign death taxes is allowed under section 2053(d). 20.2015-1 Credit for death taxes on remainders. 20.2016-1 Recovery of death taxes claimed as credit. Gross Estate 20.2031-0 Table of contents. 20.2031-1 Definition of gross estate; valuation of property. 20.2031-2 Valuation of stocks and bonds. 20.2031-3 Valuation of interests in businesses. 20.2031-4 Valuation of notes. 20.2031-5 Valuation of cash on hand or on deposit. 20.2031-6 Valuation of household and personal effects. 20.2031-7 Valuation of annuities, interests for life or term of years, and remainder or reversionary interests. 20.2031-8 Valuation of certain life insurance and annuity contracts; valuation of shares in an open-end investment company. 20.2031-9 Valuation of other property. 20.2032-1 Alternate valuation. 20.2032A-3 Material participation requirements for valuation of certain farm and closely-held business real property. 20.2032A-4 Method of valuing farm real property. 20.2032A-8 Election and agreement to have certain property valued under section 2032A for estate tax purposes. 20.2033-1 Property in which the decedent had an interest. 20.2034-1 Dower or curtesy interests. 20.2036-1 Transfers with retained life estate. 20.2037-1 Transfers taking effect at death. 20.2038-1 Revocable transfers. 20.2039-1 Annuities. 20.2039-1T Limitations and repeal of estate tax exclusion for qualified plans and individual retirement plans (IRAs) (temporary). 20.2039-2 Annuities under ``qualified plans'' and section 403(b) annuity contracts. 20.2039-3 Lump sum distributions under ``qualified plans;'' decedents dying after December 31, 1976, and before January 1, 1979. 20.2039-4 Lump sum distributions from ``qualified plans;'' decedents dying after December 31, 1978. 20.2039-5 Annuities under individual retirement plans. 20.2040-1 Joint interests. 20.2041-1 Powers of appointment; in general. 20.2041-2 Powers of appointment created on or before October 21, 1942. 20.2041-3 Powers of appointment created after October 21, 1942. 20.2042-1 Proceeds of life insurance. 20.2043-1 Transfers for insufficient consideration. 20.2044-1 Certain property for which marital deduction was previously allowed. 20.2044-2 Effective dates. 20.2045-1 Applicability to pre-existing transfers or interests. 20.2046-1 Disclaimed property. Actuarial Tables Applicable Before May 1, 1999 20.2031-7A Valuation of annuities, interests for life or term of years, and remainder or reversionary interests for estates of decedents for which the valuation date of the gross estate is before May 1, 1999. Taxable Estate 20.2051-1 Definition of taxable estate. 20.2052-1 Exemption. 20.2053-1 Deductions for expenses, indebtedness, and taxes; in general. [[Page 234]] 20.2053-2 Deduction for funeral expenses. 20.2053-3 Deduction for expenses of administering estate. 20.2053-4 Deduction for claims against the estate; in general. 20.2053-5 Deductions for charitable, etc., pledges or subscriptions. 20.2053-6 Deduction for taxes. 20.2053-7 Deduction for unpaid mortgages. 20.2053-8 Deduction for expenses in administering property not subject to claims. 20.2053-9 Deduction for certain State death taxes. 20.2053-10 Deduction for certain foreign death taxes. 20.2054-1 Deduction for losses from casualties or theft. 20.2055-1 Deduction for transfers for public, charitable, and religious uses; in general. 20.2055-2 Transfers not exclusively for charitable purposes. 20.2055-3 Effect of death taxes and administration expenses. 20.2055-4 Disallowance of charitable, etc., deductions because of ``prohibited transactions'' in the case of decedents dying before January 1, 1970. 20.2055-5 Disallowance of charitable, etc., deductions in the case of decedents dying after December 31, 1969. 20.2055-6 Disallowance of double deduction in the case of qualified terminable interest property. 20.2056-0 Table of contents. 20.2056(a)-1 Marital deduction; in general. 20.2056(a)-2 Marital deduction; ``deductible interests'' and ``nondeductible interests''. 20.2056(b)-1 Marital deduction; limitation in case of life estate or other ``terminable interest''. 20.2056(b)-2 Marital deduction; interest in unidentified assets. 20.2056(b)-3 Marital deduction; interest of spouse conditioned on survival for limited period. 20.2056(b)-4 Marital deduction; valuation of interest passing to surviving spouse. 20.2056(b)-5 Marital deduction; life estate with power of appointment in surviving spouse. 20.2056(b)-6 Marital deduction; life insurance or annuity payments with power of appointment in surviving spouse. 20.2056(b)-7 Election with respect to life estate for surviving spouse. 20.2056(b)-8 Special rule for charitable remainder trusts. 20.2056(b)-9 Denial of double deduction. 20.2056(b)-10 Effective dates. 20.2056(c)-1 Marital deduction; definition of ``passed from the decedent.'' 20.2056(c)-2 Marital deduction; definition of ``passed from the decedent to his surviving spouse.'' 20.2056(c)-3 Marital deduction; definition of ``passed from the decedent to a person other than his surviving spouse''. 20.2056(d)-1 Marital deduction; special rules for marital deduction if surviving spouse is not a United States citizen. 20.2056(d)-2 Marital deduction; effect of disclaimers of post-December 31, 1976 transfers. 20.2056(d)-3 Marital deduction; effect of disclaimers of pre-January 1, 1977 transfers. 20.2056A-0 Table of contents. 20.2056A-1 Restrictions on allowance of marital deduction if surviving spouse is not a United States citizen. 20.2056A-2 Requirements for qualified domestic trust. 20.2056A-3 QDOT election. 20.2056A-4 Procedures for conforming marital trusts and nontrust marital transfers to the requirements of a qualified domestic trust. 20.2056A-5 Imposition of section 2056A estate tax. 20.2056A-6 Amount of tax. 20.2056A-7 Allowance of prior transfer credit under section 2013. 20.2056A-8 Special rules for joint property. 20.2056A-9 Designated Filer. 20.2056A-10 Surviving spouse becomes citizen after QDOT established. 20.2056A-11 Filing requirements and payment of the section 2056A estate tax. 20.2056A-12 Increased basis for section 2056A estate tax paid with respect to distribution from a QDOT. 20.2056A-13 Effective dates. Estates of Nonresidents Not Citizens 20.2101-1 Estates of nonresidents not citizens; tax imposed. 20.2102-1 Estates of nonresidents not citizens; credits against tax. 20.2103-1 Estates of nonresidents not citizens; ``entire gross estate''. 20.2104-1 Estates of nonresidents not citizens; property within the United States. 20.2105-1 Estates of nonresidents not citizens; property without the United States. 20.2106-1 Estates of nonresidents not citizens; taxable estate; deductions in general. 20.2106-2 Estates of nonresidents not citizens; deductions for expenses, losses, etc. 20.2107-1 Expatriation to avoid tax. Miscellaneous 20.2201-1 Members of the Armed Forces dying during an induction period. 20.2202-1 Missionaries in foreign service. 20.2203-1 Definition of executor. 20.2204-1 Discharge of executor from personal liability. 20.2204-2 Discharge of fiduciary other than executor from personal liability. [[Page 235]] 20.2204-3 Special rules for estates of decedents dying after December 31, 1976; special lien under section 6324A. 20.2205-1 Reimbursement out of estate. 20.2206-1 Liability of life insurance beneficiaries. 20.2207-1 Liability of recipient of property over which decedent had power of appointment. 20.2207A-1 Right of recovery of estate taxes in the case of certain marital deduction property. 20.2207A-2 Effective date. 20.2208-1 Certain residents of possessions considered citizens of the United States. 20.2209-1 Certain residents of possessions considered nonresidents not citizens of the United States. Procedure and Administration 20.6001-1 Persons required to keep records, and render statements. 20.6011-1 General requirement of return, statement, or list. 20.6011-4 Requirement of statement disclosing participation in certain transactions by taxpayers. 20.6018-1 Returns. 20.6018-2 Returns; person required to file return. 20.6018-3 Returns; contents of returns. 20.6018-4 Returns; documents to accompany the return. 20.6036-1 Notice of qualification as executor of estate of decedent dying before 1971. 20.6036-2 Notice of qualification as executor of estate of decedent dying after 1970. 20.6061-1 Signing of returns and other documents. 20.6065-1 Verification of returns. 20.6071-1 Time for filing preliminary notice required by Sec. 20.6036- 1. 20.6075-1 Returns; time for filing estate tax return. 20.6081-1 Extension of time for filing the return. 20.6091-1 Place for filing returns or other documents. 20.6091-2 Exceptional cases. 20.6151-1 Time and place for paying tax shown on the return. 20.6161-1 Extension of time for paying tax shown on the return. 20.6161-2 Extension of time for paying deficiency in tax. 20.6163-1 Extension of time for payment of estate tax on value of reversionary or remainder interest in property. 20.6165-1 Bonds where time to pay tax or deficiency has been extended. 20.6166-1 Election of alternate extension of time for payment of estate tax where estate consists largely of interest in closely held business. 20.6166A-1 Extension of time for payment of estate tax where estate consists largely of interest in closely held business. 20.6166A-2 Definition of an interest in a closely held business. 20.6166A-3 Acceleration of payment. 20.6166A-4 Special rules applicable where due date of return was before September 3, 1958. 20.6302-1 Voluntary payments of estate taxes by electronic funds transfer. 20.6314-1 Duplicate receipts for payment of estate taxes. 20.6321 Statutory provisions; lien for taxes. 20.6321-1 Lien for taxes. 20.6323-1 Validity and priority against certain persons. 20.6324-1 Special lien for estate tax. 20.6324A-1 Special lien for estate tax deferred under section 6166 or 6166A. 20.6324B-1 Special lien for additional estate tax attributable to farm, etc., valuation. 20.6325-1 Release of lien or partial discharge of property; transfer certificates in nonresident estates. 20.6601-1 Interest on underpayment, nonpayment, or extensions of time for payment, of tax. 20.6905-1 Discharge of executor from personal liability for decedent's income and gift taxes. 20.7101-1 Form of bonds. General Actuarial Valuations 20.7520-1 Valuation of annuities, unitrust interests, interests for life or term of years, and remainder or reversionary interests. 20.7520-2 Valuation of charitable interests. 20.7520-3 Limitation on the application of section 7520. 20.7520-4 Transitional rules. Authority: 26 U.S.C. 7805. Section 20.2031-7 also issued under 26 U.S.C. 7520(c)(2). Section 20.2031-7A also issued under 26 U.S.C. 7520(c)(2). Section 20.6081-1 also issued under 26 U.S.C. 6081(a). Section 20.6302-1 also issued under 26 U.S.C. 6302(a) and (h). Section 20.7520-1 also issued under 26 U.S.C. 7520(c)(2). Section 20.7520-2 also issued under 26 U.S.C. 7520(c)(2). Section 20.7520-3 also issued under 26 U.S.C. 7520(c)(2). Section 20.7520-4 also issued under 26 U.S.C. 7520(c)(2). Source: T.D. 6296, 23 FR 4529, June 24, 1958; 25 FR 14021, Dec. 31, 1960, unless otherwise noted. [[Page 236]] Introduction (a) In general. (1) The regulations in this part (part 20, subchapter B, chapter I, title 26, Code of Federal Regulations) are designated ``Estate Tax Regulations.'' These regulations pertain to (i) the Federal estate tax imposed by chapter 11 of subtitle B of the Internal Revenue Code on the transfer of estates of decedents dying after August 16, 1954, and (ii) certain related administrative provisions of subtitle F of the Code. It should be noted that the application of many of the provisions of these regulations may be affected by the provisions of an applicable death tax convention with a foreign country. Unless otherwise indicated, references in the regulations to the ``Internal Revenue Code'' or the ``Code'' are references to the Internal Revenue Code of 1954, as amended, and references to a section or other provision of law are references to a section or other provision of the Internal Revenue Code of 1954, as amended. Unless otherwise provided, the Estate Tax Regulations are applicable to the estates of decedents dying after August 16, 1954, and supersede the regulations contained in part 81, subchapter B, chapter I, title 26, Code of Federal Regulations (1939) (Regulations 105, Estate Tax), as prescribed and made applicable to the Internal Revenue Code of 1954 by Treasury Decision 6091, signed August 16, 1954 (19 FR 5167, Aug. 17, 1954). The regulations in this part do not reflect the amendments made by the Foreign Investors Tax Act of 1966 (80 Stat. 1539). (2) Section 2208 makes the provisions of chapter 11 of the Code apply to the transfer of the estates of certain decedents dying after September 2, 1958, who were citizens of the United States and residents of a possession thereof at the time of death. Section 2209 makes the provisions of chapter 11 apply to the transfer of the estates of certain other decedents dying after September 14, 1960, who were citizens of the United States and residents of a possession thereof at the time of death. See Sec. Sec. 20.2208-1 and 20.2209-1. Except as otherwise provided in Sec. Sec. 20.2208-1 and 20.2209-1, the provisions of these regulations do not apply to the estates of such decedents. (b) Scope of regulations--(1) Estates of citizens or residents. Subchapter A of Chapter 11 of the Code pertains to the taxation of the estate of a person who was a citizen or a resident of the United States at the time of his death. A ``resident'' decedent is a decedent who, at the time of his death, had his domicile in the United States. The term ``United States'', as used in the estate tax regulations, includes only the States and the District of Columbia. The term also includes the Territories of Alaska and Hawaii prior to their admission as States. See section 7701(a)(9). A person acquires a domicile in a place by living there, for even a brief period of time, with no definite present intention of later removing therefrom. Residence without the requisite intention to remain indefinitely will not suffice to constitute domicile, nor will intention to change domicile effect such a change unless accompanied by actual removal. For the meaning of the term ``citizen of the United States'' as applied in a case where the decedent was a resident of a possession of the United States, see Sec. 20.2208- 1. The regulations pursuant to subchapter A are set forth in Sec. Sec. 20.2001-1 to 20.2056(d)-1. (2) Estates of nonresidents not citizens. Subchapter B of Chapter 11 of the Code pertains to the taxation of the estate of a person who was a nonresident not a citizen of the United States at the time of his death. A ``nonresident'' decedent is a decedent who, at the time of his death, had his domicile outside the United States under the principles set forth in subparagraph (1) of this paragraph. (See, however, section 2202 with respect to missionaries in foreign service.) The regulations pursuant to subchapter B are set forth in Sec. Sec. 20.2101-1 to 20.2107-1. (3) Miscellaneous substantive provisions. Subchapter C of Chapter 11 of the Code contains a number of miscellaneous substantive provisions. The regulations pursuant to subchapter C are set forth in Sec. Sec. 20.2201-1 to 20.2209-1. (4) Procedure and administration provisions. Subtitle F of the Internal Revenue Code contains some sections [[Page 237]] which are applicable to the Federal estate tax. The regulations pursuant to those sections are set forth in Sec. Sec. 20.6001-1 to 20.7101-1. Such regulations do not purport to be all the regulations on procedure and administration which are pertinent to estate tax matters. For the remainder of the regulations on procedure and administration which are pertinent to estate tax matters, see part 301 (Regulations on Procedure and Administration) of this chapter. (c) Arrangement and numbering. Each section of the regulations in this part (other than this section and Sec. 20.0-2) is designated by a number composed of the part number followed by a decimal point (20.); the section of the Internal Revenue Code which it interprets; a hyphen (-); and a number identifying the section. By use of these designations one can ascertain the sections of the regulations relating to a provision of the Code. For example, the regulations pertaining to section 2012 of the Code are designated Sec. 20.2012-1. [T.D. 6296, 23 FR 4529, June 24, 1958, as amended by T.D. 6526, 26 FR 414, Jan. 19, 1961; T.D. 7238, 37 FR 28717, Dec. 29, 1972; T.D. 7296, 38 FR 34191, Dec. 12, 1973; T.D. 7665, 45 FR 6089, Jan. 25, 1980; T.D. 8522, 59 FR 9646, Mar. 1, 1994]