26 U.S.C. § 2513 — Gift by husband or wife to third party

Page 2640 TITLE 26—INTERNAL REVENUE CODE § 2512 Pub. L. 107–16, title V, § 511(e), June 7, 2001, 115 Stat. 71; Pub. L. 107–147, title IV, § 411(g)(1), Mar. 9, 2002, 116 Stat. 46; Pub. L. 111–312, title III, § 302(e), Dec. 17, 2010, 124 Stat. 3302.) Editorial Notes AMENDMENTS 2010—Subsec. (c). Pub. L. 111–312 struck out subsec. (c). Text read as follows: ‘‘Notwithstanding any other provision of this section and except as provided in regu- lations, a transfer in trust shall be treated as a transfer of property by gift, unless the trust is treated as wholly owned by the donor or the donor’s spouse under subpart E of part I of subchapter J of chapter 1.’’ 2002—Subsec. (c). Pub. L. 107–147 substituted ‘‘transfer of property by gift,’’ for ‘‘taxable gift under section 2503,’’. 2001—Subsec. (c). Pub. L. 107–16 added subsec. (c). 1966—Subsec. (b). Pub. L. 89–809 inserted reference to nonresidents who are excepted from the application of section 2501(a)(2) and expanded section to include debt obligations of United States persons or the United States, a State or any political subdivision thereof, or the District of Columbia. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–312 applicable to estates of decedents dying, generation-skipping transfers, and gifts made, after Dec. 31, 2009, see section 302(f) of Pub. L. 111–312, set out as a note under section 2001 of this title. EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Re- lief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title. EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107–16 applicable to gifts made after Dec. 31, 2009, see section 511(f)(3) of Pub. L. 107–16, set out as a note under section 2502 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–809 applicable with respect to calendar year 1967 and all calendar years thereafter, see section 109(c) of Pub. L. 89–809, set out as a note under section 2501 of this title. § 2512. Valuation of gifts (a) If the gift is made in property, the value thereof at the date of the gift shall be consid- ered the amount of the gift. (b) Where property is transferred for less than an adequate and full consideration in money or money’s worth, then the amount by which the value of the property exceeded the value of the consideration shall be deemed a gift, and shall be included in computing the amount of gifts made during the calendar year. (c) Cross reference For individual’s right to be furnished on request a statement regarding any valuation made by the Secretary of a gift by that individual, see section 7517. (Aug. 16, 1954, ch. 736, 68A Stat. 406; Pub. L. 91–614, title I, § 102(b)(1), Dec. 31, 1970, 84 Stat. 1840; Pub. L. 94–455, title XX, § 2008(a)(2)(B), Oct. 4, 1976, 90 Stat. 1891; Pub. L. 97–34, title IV, § 442(b)(1), Aug. 13, 1981, 95 Stat. 322.) Editorial Notes AMENDMENTS 1981—Subsec. (b). Pub. L. 97–34 substituted ‘‘calendar year’’ for ‘‘calendar quarters’’. 1976—Subsec. (c). Pub. L. 94–455 added subsec. (c). 1970—Subsec. (b). Pub. L. 91–614 substituted ‘‘calendar quarter’’ for ‘‘calendar year’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97–34, set out as a note under section 2501 of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91–614, set out as a note under section 2501 of this title. § 2513. Gift by husband or wife to third party (a) Considered as made one-half by each (1) In general A gift made by one spouse to any person other than his spouse shall, for the purposes of this chapter, be considered as made one-half by him and one-half by his spouse, but only if at the time of the gift each spouse is a citizen or resident of the United States. This para- graph shall not apply with respect to a gift by a spouse of an interest in property if he cre- ates in his spouse a general power of appoint- ment, as defined in section 2514(c), over such interest. For purposes of this section, an indi- vidual shall be considered as the spouse of an- other individual only if he is married to such individual at the time of the gift and does not remarry during the remainder of the calendar year. (2) Consent of both spouses Paragraph (1) shall apply only if both spouses have signified (under the regulations provided for in subsection (b)) their consent to the application of paragraph (1) in the case of all such gifts made during the calendar year by either while married to the other. (b) Manner and time of signifying consent (1) Manner A consent under this section shall be sig- nified in such manner as is provided under reg- ulations prescribed by the Secretary. (2) Time Such consent may be so signified at any time after the close of the calendar year in which the gift was made, subject to the fol- lowing limitations— (A) The consent may not be signified after the 15th day of April following the close of such year, unless before such 15th day no re- turn has been filed for such year by either spouse, in which case the consent may not be signified after a return for such year is filed by either spouse. (B) The consent may not be signified after a notice of deficiency with respect to the tax for such year has been sent to either spouse in accordance with section 6212(a). Page 2641 TITLE 26—INTERNAL REVENUE CODE § 2514 (c) Revocation of consent Revocation of a consent previously signified shall be made in such manner as in provided under regulations prescribed by the Secretary, but the right to revoke a consent previously sig- nified with respect to a calendar year— (1) shall not exist after the 15th day of April following the close of such year if the consent was signified on or before such 15th day; and (2) shall not exist if the consent was not sig- nified until after such 15th day. (d) Joint and several liability for tax If the consent required by subsection (a)(2) is signified with respect to a gift made in any cal- endar year, the liability with respect to the en- tire tax imposed by this chapter of each spouse for such year shall be joint and several. (Aug. 16, 1954, ch. 736, 68A Stat. 406; Pub. L. 91–614, title I, § 102(b)(2), Dec. 31, 1970, 84 Stat. 1840; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–34, title IV, § 442(b)(2), Aug. 13, 1981, 95 Stat. 322.) Editorial Notes AMENDMENTS 1981—Subsec. (a)(1), (2). Pub. L. 97–34, § 442(b)(2)(A), substituted ‘‘calendar year’’ for ‘‘calendar quarter’’. Subsec. (b)(2). Pub. L. 97–34, § 442(b)(2)(B)–(D), in in- troductory text, substituted ‘‘calendar year’’ for ‘‘cal- endar quarter’’, in subpar. (A), substituted ‘‘The con- sent’’ for ‘‘the consent’’, ‘‘15th day of April following the close of such year’’ for ‘‘15th day of the second month following the close of such calendar quarter’’, and ‘‘such year’’ for ‘‘such calendar quarter’’ in two other places, and in subpar. (B) substituted ‘‘The con- sent’’ and ‘‘such year’’ for ‘‘the consent’’ and ‘‘such cal- endar quarter’’. Subsec. (c). Pub. L. 97–34, § 442(b)(2)(E), in provision preceding par. (1) substituted ‘‘calendar year’’ for ‘‘cal- endar quarter’’ and in par. (1) ‘‘15th day of April fol- lowing the close of such year’’ for ‘‘15th day of the sec- ond month following the close of such quarter’’. Subsec. (d). Pub. L. 97–34, § 442(b)(2)(F), substituted ‘‘any calendar year’’ and ‘‘such year’’ for ‘‘any calendar quarter’’ and ‘‘such calendar quarter’’. 1976—Subsecs. (b)(1), (c). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1970—Subsecs. (a), (b)(2). Pub. L. 91–614, § 102(b)(2)(A), substituted ‘‘calendar quarter’’ for ‘‘calendar year’’. Subsec. (b)(2)(A). Pub. L. 91–614, § 102(b)(2)(B), sub- stituted ‘‘the 15th day of the second month’’ for ‘‘the 15th day of April’’ and substituted ‘‘such calendar quar- ter’’ for ‘‘such year’’. Subsec. (b)(2)(B). Pub. L. 91–614, § 102(b)(2)(C), sub- stituted ‘‘such calendar quarter’’ for ‘‘such year’’. Subsec. (c). Pub. L. 91–614, § 102(b)(2)(A), substituted ‘‘calendar quarter’’ for ‘‘calendar year’’. Subsec. (c)(1). Pub. L. 91–614, § 102(b)(2)(D), substituted ‘‘15th day of the second month following the close of such calendar quarter’’ for ‘‘15th day of April following the close of such year’’. Subsec. (d). Pub. L. 91–614, § 102(b)(2)(A), (E), sub- stituted ‘‘calendar quarter’’ for ‘‘calendar year’’ and ‘‘such calendar quarter’’ for ‘‘such year’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–34 applicable with respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97–34, set out as a note under section 2501 of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–614 applicable with respect to gifts made after Dec. 31, 1970, see section 102(e) of Pub. L. 91–614, set out as a note under section 2501 of this title. § 2514. Powers of appointment (a) Powers created on or before October 21, 1942 An exercise of a general power of appointment created on or before October 21, 1942, shall be deemed a transfer of property by the individual possessing such power; but the failure to exer- cise such a power or the complete release of such a power shall not be deemed an exercise thereof. If a general power of appointment cre- ated on or before October 21, 1942, has been par- tially released so that it is no longer a general power of appointment, the subsequent exercise of such power shall not be deemed to be the ex- ercise of a general power of appointment if— (1) such partial release occurred before No- vember 1, 1951, or (2) the donee of such power was under a legal disability to release such power on October 21, 1942, and such partial release occurred not later than six months after the termination of such legal disability. (b) Powers created after October 21, 1942 The exercise or release of a general power of appointment created after October 21, 1942, shall be deemed a transfer of property by the indi- vidual possessing such power. (c) Definition of general power of appointment For purposes of this section, the term ‘‘general power of appointment’’ means a power which is exercisable in favor of the individual possessing the power (hereafter in this subsection referred to as the ‘‘possessor’’), his estate, his creditors, or the creditors of his estate; except that— (1) A power to consume, invade, or appro- priate property for the benefit of the possessor which is limited by an ascertainable standard relating to the health, education, support, or maintenance of the possessor shall not be deemed a general power of appointment. (2) A power of appointment created on or be- fore October 21, 1942, which is exercisable by the possessor only in conjunction with another person shall not be deemed a general power of appointment. (3) In the case of a power of appointment created after October 21, 1942, which is exer- cisable by the possessor only in conjunction with another person— (A) if the power is not exercisable by the possessor except in conjunction with the cre- ator of the power—such power shall not be deemed a general power of appointment; (B) if the power is not exercisable by the possessor except in conjunction with a per- son having a substantial interest, in the property subject to the power, which is ad- verse to exercise of the power in favor of the possessor—such power shall not be deemed a general power of appointment. For the pur- poses of this subparagraph a person who, after the death of the possessor, may be pos- sessed of a power of appointment (with re- spect to the property subject to the posses- sor’s power) which he may exercise in his own favor shall be deemed as having an in- terest in the property and such interest shall