Page:United States Statutes at Large Volume 56 Part 1.djvu/972

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 Post, p. 104. 53 Stat. 122. 26U. . o. 811(g). 63 Stat. 144. 25U.S. C. §§ 000- 101; Supp. 1, i 101. AK, pp. 9-95L. (d) PowERs WITH RESPECT TO WHICH AMENDMENTS NOT APPLI- CABLE.- (1) The amendments made by this section shall not apply with respect to a power to appoint created on or before the date of the enactment of this Act which is other than a power exercisable in favor of the decedent, his estate, his creditors, or the creditors of his estate, unless such power is exercised after the date of the enactment of this Act. (2) The amendments made by this section shall not become applicable with respect to a power to appoint created on or before the date of enactment of this Act, which is exercisable in favor of the decedent, his estate, his creditors, or the creditors of his estate, if at such date the donee of such power is under a legal disability to release such power, until six months after the termination of such legal disability. For the purposes of the preceding sentence, an individual in the military or naval forces of the United States shall, until the termination of the present war, be considered under a legal disability to release a power to appoint. (3) The amendments made by this section shall not apply with respect to any power to appoint created on or before the date of the enactment of this Act if it is released before January 1, 1943, or within the time limited by paragraph (2) in cases to which such paragraph is applicable; or if the decedent dies before January 1, 1943, or within the time limited by paragraph (2) in cases to which such paragraph is applicable, and such power is not exercised. SEC. 404. PROCEEDS OF LIFE INSURANCE. (a) GENERAL RnLE.-Section 811 (g) (relating to life insurance) is amended to read as follows: "(g) PROCEEDS OF LIFE INSURANCE. - "(1) RECEIVABLE BY THE EXECUTOR. -To the extent of the amount receivable by the executor as insurance under policies upon the life of the decedent. "(2) RECEIVABLE BY OTHER BENEFICIARIES. - To the extent of the amount receivable by all other beneficiaries as insurance under policies upon the life of the decedent (A) purchased with pre- miums, or other consideration, paid directly or indirectly by the decedent, in proportion that the amount so paid by the decedent bears to the total premiums paid for the insurance, or (B) with respect to which the decedent possessed at his death any of the incidents of ownership, exercisable either alone or in conjunction with any other person. For the purposes of clause (A) of this paragraph, if the decedent transferred, by assignment or otherwise, a policy of insurance, the amount paid directly or indirectly by the decedent shall be reduced y an amount which- bears the same ratio to the amount paid directly or indirectly by the decedent as the consideration in money or money's worth received by the decedent for the transfer bears to the value of the policy at the time of the transfer. For the purposes of clause (B) of this paragraph, the term 'incident of ownership' does not include a reversionary interest. (3) TRANSFE NOT A GIrr.-The amount receivable under a po cy of insurance transferred, by assignment or otherwise, by the decedent shall not be includible under paragraph (2) (A) if the transfer did not constitute a ift, in whole or m part, under Chapter 4, or, in case the transfer was made at a time when Chapter 4 was not in effect, would not have constituted a gift, in 944 [56 STAT.

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