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Estate And Gift Tax Effects Of Selling A Remainder: Have D'Ambrosio, Wheeler And Magnin Changed The Rules?, Ronald H. Jensen

Elisabeth Haub School of Law Faculty Publications

This article traces the evolving judicial interpretation of the “adequate and full consideration” exclusion found in section 2036. Part III examines the proper application of the “adequate and full consideration” exclusion to simple sales of remainders such as those involved in D'Ambrosio and Wheeler and concludes that the holdings in those cases are indisputably correct. It then analyzes the possible planning opportunities these decisions offer, particularly in light of section 2702. Part IV examines the effect of the D'Ambrosio trilogy on spousal elections. This Part outlines the potential gift and estate tax savings this device affords and then considers how …