Page:United States Statutes at Large Volume 53 Part 1.djvu/133

 (c) TRANSFERS IN CONTEMPLATION OF, OR TAKING EFFECT AT DEATH.- To the extent of any interest therein of which the decedent has at any time made a transfer, by trust or otherwise, in contempla- tion of or intended to take effect in possession or enjoyment at or after his death, or of which he has at any time made a transfer, by trust or otherwise, under which he has retained for his life or for any pe- riod not ascertainable without reference to his death or for any period which does not in fact end before his death (1) the possession or enjoy- ment of, or the right to the income from, the property, or (2) the right, either alone or in conjunction with any person, to designate the per- sons 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. Any transfer of a material part of his property in the nature of a final disposition or distribution thereof, made by the decedent within two years prior to his death without such consideration, shall, unless shown to the contrary, be deemed to have been made in contemplation of death within the meaning of this subchapter; (d) REVOCABLE TRANSFERS- (1) TRANSFERS AFTER JUNE 22, 1936.-To the extent of any in- terest therein of which the decedent has at any time made a transfer (except in case of a bona-fide sale for an adequate and full consideration in money or money's worth), by trust or other- wise, where the enjoyment thereof was subject at the date of his death to any change through the exercise of a power (in whatever capacity exercisable) by the decedent alone or by the decedent in conjunction with any other person (without regard to when or from what source the decedent acquired such power), to alter, amend, revoke, or terminate, or where any such power is relin- quished in contemplation of decedent's death; (2) TRANSFERS ON OR PRIOR TO JUNE 22, 1936.-To the extent of any interest therein of which the decedent has at any time made a transfer, by trust or otherwise, where the enjoyment thereof was subject at the date of his death to any change through the exer- cise of a power, either by the decedent alone or in conjunction with any person to alter, amend, or revoke, or where the decedent relinquished any such power in contemplation of his death, except in case of a bona fide sale for an adequate and full consideration in money or money's worth. Except in the case of transfers made after June 22 1936, no interest of the decedent of which he has made a transfer shall be included in the gross estate under para- graph (1) unless it is includible under this paragraph; (3) DATE OF EXISTENCE OF POWER.-For the purposes of this sub- section 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 exer- cised, on the date of his death. (4) RELINQUISBMENT OF POWER IN CONTEMPLATION OF DEATH.- The relinquishment of any such power, not admitted or shown to have been in contemplation of the decedent's death, made within two years prior to his death without such a consideration and affecting the interest or interests (whether arising from one or more transfers or the creation of one or more trusts) of any one 98907°--39-PT. 1-9 ESTATE TAX 121

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