Taxation of Estates and Gifts

Immaterial Table


Condition Immaterial under Section 2036 Immaterial under Section 2038
Joint Power, i.e., act of D and another person is necessary to exercise the power ✔ Treas. Reg. § 20.2036-1(b)(3) text(i) ✔ Treas. Reg. § 20.2038-1(a)
Capacity, i.e., D holds power as a fiduciary, like a trustee ✔ Treas. Reg. § 20.2036-1(b)(3) text(ii) ✔ Treas. Reg. § 20.2038-1(a)
Contingency beyond D’s control is condition precedent to D’s having the power ✔ Treas. Reg. § 20.2036-1(b)(3) text(iii) ❌ Treas. Reg. § 20.2038-1(b)
Contingency within D’s control is condition precedent to D’s having the power ✔ Implied from Treas. Reg. § 20.2036-1(b)(3) text(iii) ✔ Implied from Treas. Reg. § 20.2038-1(b)
Power relates only to time and manner of enjoyment, e.g. income and remainder beneficiary is the same person ❌ Implied from Treas. Reg. § 20.2036-1(b)(3) text(iii)