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Title 26, Internal Revenue CodeRelease 119-110

§2043 Transfers for Insufficient Consideration

Title 26 › Subtitle B — Estate and Gift Taxes › CHAPTER 11 — ESTATE TAX › Subchapter A — Estates of Citizens or Residents › PART III — GROSS ESTATE › § 2043

Last updated Sep 22, 2026|Official source

Summary

When a transfer, trust, interest, right, or power described in sections 2035–2038 or section 2041 is made for money or something worth money but it is not a real sale for a fair price, include in the gross estate only the amount by which the property's fair market value at death is greater than what the decedent actually received. Giving up marital rights like dower, curtesy, or a similar statutory marital interest does not count as receiving money or value. But for computing certain expenses under section 2053, a transfer that meets paragraph (1) of section 2516 is treated as a full and adequate sale.

Full Legal Text

Title 26, §2043

Internal Revenue Code, Source: USLM XML via OLRC

(a)In general
If any one of the transfers, trusts, interests, rights, or powers enumerated and described in sections 2035 to 2038, inclusive, and section 2041 is made, created, exercised, or relinquished for a consideration in money or money’s worth, but is not a bona fide sale for an adequate and full consideration in money or money’s worth, there shall be included in the gross estate only the excess of the fair market value at the time of death of the property otherwise to be included on account of such transaction, over the value of the consideration received therefor by the decedent.
(b)Marital rights not treated as consideration
(1)In general
For purposes of this chapter, a relinquishment or promised relinquishment of dower or curtesy, or of a statutory estate created in lieu of dower or curtesy, or of other marital rights in the decedent’s property or estate, shall not be considered to any extent a consideration “in money or money’s worth”.
(2)Exception
For purposes of section 2053 (relating to expenses, indebtedness, and taxes), a transfer of property which satisfies the requirements of paragraph (1) of section 2516 (relating to certain property settlements) shall be considered to be made for an adequate and full consideration in money or money’s worth.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1984—Subsec. (b). Pub. L. 98–369 amended subsec. (b) generally, designating existing provisions as par. (1) and adding par. (2).

Statutory Notes and Related Subsidiaries

Effective Date

of 1984 Amendment Pub. L. 98–369, div. A, title IV, § 425(c)(1), July 18, 1984, 98 Stat. 804, provided that: “The

Amendments

made by subsection (a) [amending this section and section 2053 of this title] shall apply to estates of decedents dying after the date of the enactment of this Act [July 18, 1984].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 2043

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110