§2519 — Dispositions of certain life estates

Therefore, Treasury Regulation § 25.2519-1(e) does not apply to the transactions in issue.

section 2519 deemed transfers lies with the trustees of residual trusts A and B, section 2035 (b) does not apply .

18 We express no view on whether the other beneficiaries of the Marital Trust could be treated as making a gift to Sally for gift tax purposes.

Kite maintained a qualifying income interest in the converted property, the transfers were not taxable under section 2519.

Section 2519 Deemed Transfers On December 8, 2000, Mrs. Morgens transferred her income interest in residual trust A as gifts to the remainder beneficiaries in the same proportions as their respective remainder interests, thereby triggering a transfer of the QTIP remainder (2000 deemed transfer) under section 2519. On the date of the gifts, the corp

Kite's children in exchange for the private annuity agreements was a disguised gift subject to gift tax; (2) whether the transfer ofthe QTIP trust assets constituted a disposition ofthe qualifying income interest for life such that the disposition was a taxable gift ofthe remainder interest under section 2519;2 and (3) whether Mrs.

Section 2519 is similar to section 2044 but it addresses lifetime transfers ofQTIP by the surviving spouse." But for these sections, the QTIP remainder, never actually owned by the surviving spouse, would not be included in a transfer tax base by the surviving s ouse or her estate. Sections 2044 and 2519 therefore ensure that taxation ofthe transfe

Section 2519 is similar to section 2044, but it addresses lifetime transfers of QTIP by the surviving spouse. But for these sections, the QTIP remainder, never actually owned by the surviving spouse, would not be included in a transfer tax base by the surviving spouse or her estate. Sections 2044 and 2519 therefore ensure that taxation of the trans

. D's executor elected under section 2056(b)(7) to treat the entire trust property as qualified terminable - 57 - interest property and claimed a marital deduction of $800,000 . S made no disposition of the income interest during S's lifetime under section 2519 . On the date of S's death, the fair market value of the trust property was $740,000 . S's executor did not elect-the alternate valuation date . The amount included in S's gross estate pursuant to section 2044 is $740,000 . Section 20 .20

. D's executor elected under section 2056(b)(7) to treat the entire trust property as qualified terminable - 57 - interest property and claimed a marital deduction of $800,000 . S made no disposition of the income interest during S's lifetime under section 2519 . On the date of S's death, the fair market value of the trust property was $740,000 . S's executor did not elect-the alternate valuation date . The amount included in S's gross estate pursuant to section 2044 is $740,000 . Section 20 .20

es to any property if-- (1) a deduction was allowed with respect to the transfer of such property to the decedent-- (A) under section 2056 by reason of subsection (b)(7) thereof, or (B) under section 2523 by reason of subsection (f) thereof, and (2) section 2519 (relating to dispositions of certain life estates) did not apply with respect to a disposition by the decedent of part (continued...) - 9 - surviving spouse the value of property for which no QTIP election was made.

— This section applies to any property if— (1) a deduction was allowed with respect to the transfer of such property to the decedent— (A) under section 2056 by reason of subsection (b)(7) thereof, or (B) under section 2523 by reason of subsection (f) thereof, and (2) section 2519 (relating to dispositions of certain life estates) did not apply with respect to a disposition by the decedent of part or all of such property.