TITLE III — ESTATE AND DONOR’S TAXES
what source the decedent acquired such power), to alter, amend,
revoke or terminate, or where any such power is relinquished in
contemplation of the decedent’s death.
(2) For the purpose of this Subsection, the power to alter, amend or
revoke shall be considered to exist on the date of the decedent’s
death even though the exercise of the power is subject to a precedent
giving of notice or even though the alteration, amendment or
revocation takes effect only on the expiration of a stated period
after the exercise of the power, whether or not on or before the
date of the decedent’s death notice has been given or the power
has been exercised. In such cases, proper adjustment shall be made
representing the interests which would have been excluded from the
power if the decedent had lived, and for such purpose if the notice
has not been given or the power has not been exercised on or before
the date of his death, such notice shall be considered to have been
given, or the power exercised, on the date of his death.
(D)
Property Passing Under General Power of Appointment. — To the
extent of any property passing under a general power of appointment
exercised by the decedent: (1) by will, or (2) by deed executed in
contemplation of, or intended to take effect in possession or enjoyment
at, or after his death, or (3) by deed under which he has retained for his
life or any period not ascertainable without reference to his death or for
any period which does not in fact end before his death (a) the possession
or enjoyment of, or the right to the income from, the property, or (b) the
right, either alone or in conjunction with any person, to designate the
persons who shall possess or enjoy the property or the income therefrom;
except in case of a bona fide sale for an adequate and full consideration in
money or money’s worth.
(E)
Proceeds of Life Insurance. — To the extent of the amount receivable
by the estate of the deceased, his executor, or administrator, as insurance
under policies taken out by the decedent upon his own life, irrespective
of whether or not the insured retained the power of revocation, or to
the extent of the amount receivable by any beneficiary designated in
the policy of insurance, except when it is expressly stipulated that the
designation of the beneficiary is irrevocable.
(F)
Prior Interests. — Except as otherwise specifically provided therein,
Subsections (B), (C) and (E) of this Section shall apply to the transfers,
trusts, estates, interests, rights, powers and relinquishment of powers,
as severally enumerated and described therein, whether made, created,
National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)
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