§2207 — Title 26 Internal Revenue Code | U.S. Code

Summary

Unless the will says otherwise, the executor can get back part of the estate tax from anyone who received property because the decedent had a power to decide who would get it. The recipient must pay the same share of the tax as the value of that property is of the taxable estate. If several people got such property, they share the payment in the same ratio. If the surviving spouse got the property and a marital deduction under section 2056 applied, the executor generally cannot recover tax from that property. The rule does apply, however, to the property's value after reducing it by the excess of the total marital deductions allowed over any life‑insurance proceeds to the spouse that also qualified for the marital deduction. Section 2041: property included because of a power of appointment. Section 2056: marital deduction for property passing to a spouse.

Title 26, §2207

Internal Revenue Code — Source: USLM XML via OLRC

Unless the decedent directs otherwise in his will, if any part of the gross estate on which the tax has been paid consists of the value of property included in the gross estate under section 2041, the executor shall be entitled to recover from the person receiving such property by reason of the exercise, nonexercise, or release of a power of appointment such portion of the total tax paid as the value of such property bears to the taxable estate. If there is more than one such person, the executor shall be entitled to recover from such persons in the same ratio. In the case of such property received by the surviving spouse of the decedent for which a deduction is allowed under section 2056 (relating to marital deduction), this section shall not apply to such property except as to the value thereof reduced by an amount equal to the excess of the aggregate amount of the marital deductions allowed under section 2056 over the amount of proceeds of insurance upon the life of the decedent receivable by the surviving spouse for which proceeds a marital deduction is allowed under such section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Pub. L. 94–455 substituted “the taxable estate” for “the sum of the taxable estate and the amount of the exemption allowed in computing the taxable estate, determined under section 2052, or section 2106(a), as the case may be” after “property bears to”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1976 AmendmentAmendment by Pub. L. 94–455 applicable to estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94–455, set out as a note under section 2001 of this title.

§2207 Liability of recipient of property over which decedent had power of appointment