Internal Revenue Code:Sec. 2207B. Right of recovery where decedent retained interest

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 11 - ESTATE TAX
        Subchapter C - Miscellaneous
      

Statute

    Sec. 2207B. Right of recovery where decedent retained interest
 
    (a) Estate tax
      (1) In general
        If any part of the gross estate on which tax has been paid
      consists of the value of property included in the gross estate by
      reason of section 2036 (relating to transfers with retained life
      estate), the decedent's estate shall be entitled to recover from
      the person receiving the property the amount which bears the same
      ratio to the total tax under this chapter which has been paid as
      -
          (A) the value of such property, bears to
          (B) the taxable estate.
      (2) Decedent may otherwise direct
        Paragraph (1) shall not apply with respect to any property to
      the extent that the decedent in his will (or a revocable trust)
      specifically indicates an intent to waive any right of recovery
      under this subchapter with respect to such property.
    (b) More than one recipient
      For purposes of this section, if there is more than 1 person
    receiving the property, the right of recovery shall be against each
    such person.
    (c) Penalties and interest
      In the case of penalties and interest attributable to the
    additional taxes described in subsection (a), rules similar to the
    rules of subsections (a) and (b) shall apply.
    (d) No right of recovery against charitable remainder trusts
      No person shall be entitled to recover any amount by reason of
    this section from a trust to which section 664 applies (determined
    without regard to this section).
 

Sources

    (Added Pub. L. 100-647, title III, Sec. 3031(f)(1), Nov. 10, 1988,
    102 Stat. 3637; amended Pub. L. 101-508, title XI, Sec.
    11601(b)(1), Nov. 5, 1990, 104 Stat. 1388-490; Pub. L. 105-34,
    title XIII, Sec. 1302(b), Aug. 5, 1997, 111 Stat. 1039.)
 

Miscellaneous

                                 AMENDMENTS
      1997 - Subsec. (a)(2). Pub. L. 105-34 amended heading and text of
    par. (2) generally.  Prior to amendment, text read as follows:
    ''Paragraph (1) shall not apply if the decedent otherwise directs
    in a provision of his will (or a revocable trust) specifically
    referring to this section.''
      1990 - Subsec. (b). Pub. L. 101-508, Sec. 11601(b)(1)(A),
    redesignated former subsec. (c) as (b) and struck out former
    subsec. (b) which read as follows: ''If for any calendar year tax
    is paid under chapter 12 with respect to any person by reason of
    property treated as transferred by such person under section
    2036(c)(4), such person shall be entitled to recover from the
    original transferee (as defined in section 2036(c)(4)(C)(ii)) the
    amount which bears the same ratio to the total tax for such year
    under chapter 12 as -
        ''(1) the value of such property for purposes of chapter 12,
      bears to
        ''(2) the total amount of the taxable gifts for such year.''
      Subsec. (c). Pub. L. 101-508, Sec. 11601(b)(1), redesignated
    subsec. (d) as (c) and substituted ''subsection (a)'' for
    ''subsections (a) and (b)'' and ''subsections (a) and (b)'' for
    ''subsections (a), (b), and (c)''. Former subsec. (c) redesignated
    (b).
      Subsecs. (d), (e). Pub. L. 101-508, Sec. 11601(b)(1)(A),
    redesignated subsecs. (d) and (e) as (c) and (d), respectively.
    Former subsec. (d) redesignated (c).
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Amendment by Pub. L. 105-34 applicable with respect to estates of
    decedents dying after Aug. 5, 1997, see section 1302(c) of Pub. L.
    105-34, set out as a note under section 2207A of this title.
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by Pub. L. 101-508 applicable in the case of property
    transferred after Dec. 17, 1987, see section 11601(c) of Pub. L.
    101-508, set out as a note under section 2036 of this title.
                               EFFECTIVE DATE
      Section effective as if included in provisions of Revenue Act of
    1987, Pub. L. 100-203, title X, except that if an amount is
    included in the gross estate of a decedent under section 2036 of
    this title other than solely by reason of section 2036(c) of this
    title, section applicable to such amount only with respect to
    property transferred after Nov. 10, 1988, see section 3031(h)(1),
    (3) of Pub. L. 100-647, set out as an Effective Date of 1988
    Amendment note under section 2036 of this title.