Page:United States Statutes at Large Volume 115 Part 1.djvu/99

 PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 77 " (3) DECEDENT NONRESIDENTS WHO ARE NOT CITIZENS OF THE UNITED STATES.— In the case of a decedent nonresident not a citizen of the United States— " (A) paragraph (2)(B) shall be applied by substituting '$60,000 ' for '$1,300,000 ', and "(B) paragraph (2)(C) shall not apply. " (c) ADDITIONAL BASIS INCREASE FOR PROPERTY ACQUIRED BY SURVIVING SPOUSE.— "(1) IN GENERAL.—In the case of property to which this subsection applies and which is qualified spousal property, the basis of such property under subsection (a) (as increased under subsection (b)) shall be increased by its spousal property basis increase. " (2) SPOUSAL PROPERTY BASIS INCREASE.—For purposes of this subsection— "(A) IN GENERAL.—The spousal property basis increase for property referred to in paragraph (1) is the portion of the aggregate spousal property basis increase which is allocated to the property pursuant to this section. "(B) AGGREGATE SPOUSAL PROPERTY BASIS INCREASE.— In the case of any estate, the aggregate spousal property basis increase is $3,000,000. "(3) QUALIFIED SPOUSAL PROPERTY.—For purposes of this subsection, the term 'qualified spousal property' means— "(A) outright transfer property, and "(B) qualified terminable interest property. "(4) OUTRIGHT TRANSFER PROPERTY.—For purposes of this subsection— "(A) IN GENERAL.— The term 'outright transfer property' means any interest in property acquired from the decedent by the decedent's surviving spouse. "(B) EXCEPTION. — Subparagraph (A) shall not apply where, on the lapse of time, on the occurrence of an event or contingency, or on the failure of an event or contingency to occur, an interest passing to the surviving spouse will terminate or fail— "(i)(I) if an interest in such property passes or has passed (for less than an adequate and full consideration in money or money's worth) from the decedent to any person other than such surviving spouse (or the estate of such spouse), and "(II) if by reason of such passing such person (or his heirs or assigns) may possess or enjoy any part of such property after such termination or failure of the interest so passing to the surviving spouse, or "(ii) if such interest is to be acquired for the surviving spouse, pursuant to directions of the decedent, by his executor or by the trustee of a trust. For purposes of this subparagraph, an interest shall not be considered as an interest which will terminate or fail merely because it is the ownership of a bond, note, or similar contractual obligation, the discharge of which would not have the effect of an annuity for life or for a term. "(C) INTEREST OF SPOUSE CONDITIONAL ON SURVIVAL FOR LIMITED PERIOD.— For purposes of this paragraph, an

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