Page:United States Statutes at Large Volume 95.djvu/328

 95 STAT. 302

26 USC 2040.

PUBLIC LAW 97-34—AUG. 13, 1981 "(2) QuAUFiED JOINT INTEREST DEFINED.—For purposes of paragraph (1), the term 'qualified joint interest' means any interest in property held by the decedent and the decedent's spouse as— "(A) tenants by the entirety, or "(B) joint tenants with right of survivorship, but only if the decedent and the spouse of the decedent are the only joint tenants." (2) TECHNICAL AMENDMENT.—Subsection (a) of section 2040 is amended by striking out "joint tenants" each place it appears and inserting in lieu thereof "joint tenants with right of survivorship". (3) CONFORMING AMENDMENTS.—

26 USC 2515, 2515A, 6019.

26 USC 2056.

(A) Subsections (c), (d), and (e) of section 2040 are hereby repealed. (B) Section 2515 (relating to tenancies by the entirety in real property), section 2515A (relating to tenancies by the entirety in personal property), and subsection (c) of section 6019 (relating to gift tax return) are hereby repealed. (C) The table of sections for subchapter B of chapter 12 (relating to transfers) is amended by striking out the items relating to sections 2515 and 2515A. (d) ELECTION TO HAVE CERTAIN LIFE INTERESTS QUALIFY FOR MARITAL DEDUCTION.— (1) ESTATE TAX.—Subsection (b) of section 2056 is amended by

adding at the end thereof the following new paragraphs: "(7) ELECTION WITH RESPECT TO U F E ESTATE FOR SURVIVING SPOUSE.—

"(A) IN GENERAL.—In the case of qualified terminable interest property— "(i) for purposes of subsection (a), such property shall be treated as passing to the surviving spouse, and "(ii) for purposes of paragraph (1)(A), no part of such property shall be treated as passing to any person other than the surviving spouse. "(B) QUALIFIED TERMINABLE INTEREST PROPERTY DEFINED.—

For purposes of this paragraph— "(i) IN GENERAL.—The term 'qualified terminable interest property' means property— "(I) which passes from the decedent, "(II) in which the surviving spouse has a qualifying income interest for life, and "(III) to which an election under this paragraph applies. "(ii) QUALIFYING INCOME INTEREST FOR LIFE.—The surviving spouse has a qualifying income interest for life if— "(I) the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals, and "(II) no person has a power to appoint any part of the property to any person other than the surviving spouse. Subclause (II) shall not apply to a power exercisable only at or after the death of the surviving spouse. "(iii) PROPERTY INCLUDES INTEREST THEREIN.—The term 'property' includes an interest in property.

�