Tatia D. Barnes, Esq.
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    • SCPA 1301 Definition of a small estate
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    • SCPA § 1404 - Witnesses to be Examined; proof required
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Tatia D. Barnes, Esq.

Serving Your Probate, Administration and Estate Planning Needs
The Three-Year Rule
Disclaimer: These codes may not be the most recent version. I make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to any other site. Please check official sources.

26 USC § 2035 Adjustments for certain gifts made within 3 years of decedent's death

(a) Inclusion of certain property in gross estate
--If--
(1) the decedent made a transfer (by trust or otherwise) of an interest in any property, or relinquished a power with respect to any property, during the 3-year period ending on the date of the decedent's death, and
(2) the value of such property (or an interest therein) would have been included in the decedent's gross estate under section 2036, 2037, 2038, or 2042 if such transferred interest or relinquished power had been retained by the decedent on the date of his death,
the value of the gross estate shall include the value of any property (or interest therein) which would have been so included.

(b) Inclusion of gift tax on gifts made during 3 years before decedent's death.
--The amount of the gross estate (determined without regard to this subsection) shall be increased by the amount of any tax paid under chapter 12 by the decedent or his estate on any gift made by the decedent or his spouse during the 3-year period ending on the date of the decedent's death.

(c)
 Other rules relating to transfers within 3 years of death.

(1) In general.
--For purposes of--
(A) section 303(b) (relating to distributions in redemption of stock to pay death taxes),
(B) section 2032A (relating to special valuation of certain farms, etc., real property), and
(C) subchapter C of chapter 64 (relating to lien for taxes),
the value of the gross estate shall include the value of all property to the extent of any interest therein of which the decedent has at any time made a transfer, by trust or otherwise, during the 3-year period ending on the date of the decedent's death.
(2) Coordination with section 6166.--An estate shall be treated as meeting the 35 percent of adjusted gross estate requirement of section 6166(a)(1)only if the estate meets such requirement both with and without the application of subsection (a).
(3) Marital and small transfers.--Paragraph (1) shall not apply to any transfer (other than a transfer with respect to a life insurance policy) made during a calendar year to any donee if the decedent was not required by section 6019 (other than by reason of section 6019(2)) to file any gift tax return for such year with respect to transfers to such donee.

(d) Exception.--Subsection (a) and paragraph (1) of subsection (c) shall not apply to any bona fide sale for an adequate and full consideration in money or money's worth.

(e) Treatment of certain transfers from revocable trusts.--For purposes of this section and section 2038, any transfer from any portion of a trust during any period that such portion was treated under section 676 as owned by the decedent by reason of a power in the grantor (determined without regard to section 672(e)) shall be treated as a transfer made directly by the decedent.

Disclaimer: These codes may not be the most recent version. I make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to any other site. Please check official sources.

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TATIA D. BARNES, ESQ.
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​(212) 537-4069
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  • Home
  • Probate
  • Estate Administration
    • Estate Administration List For Clients
  • Estate Litigation
    • Surrogate Court Citations
    • Estate Discovery and Witnesses
  • Estate Planning
    • Power Of Attorney
    • Living Will - Health Care Proxy
    • Wills
    • Trusts
    • Estate Planning List For Clients
  • Planning For Elder Care Issues
  • Long Term Care Planning
  • Special Needs Planning
  • Contact
  • About
    • Blog
    • Fees
    • Philosophy
    • Disclaimer
  • Client's Rights
  • Helpful Estate Terms
  • Resources
    • New York Dead Man's Statute - CPLR 4519
    • EPTL 3-3.5 Conditions Qualifying Dispositions - Conditions against contest
    • EPTL 4-1.1 INTESTATE SUCCESSION
    • EPTL 5-1.1 A - Right of Election By Surviving Spouse
    • EPTL 5-1.2 - Disqualification as surviving spouse
    • EPTL § 5-3.1 Exemption for benefit of family
    • EPTL 7-1.12 Supplemental Needs Trusts
    • EPTL § 10-6.6 Exercise of a Power of Appointment
    • MHL 81.36 Discharge or Modification of Powers of Guardian
    • NY General Obligations Law 5-1513 Power of Attorney statutory short form
    • NY Mental Health & Hygiene Law 81.02 Power to appoint a Guardian
    • SCPA § 207. Lifetime trusts; jurisdiction and venue
    • SCPA 302 - Pleadings
    • SCPA 406 Reference to Hear and Report
    • SCPA 306 Citation
    • SCPA 407 Assignment of Counsel For Indigent Persons
    • SCPA 503 Proceedings Upon Jury Trial
    • SCPA 507 Testimony of Witnesses
    • SCPA 707 Eligibility to Receive Letters
    • SCPA 711 Suspension, modification or revocation of letters or removal for disqualification or misconduct
    • SCPA 719 In what cases letters may be suspended, modified or revoked, or a lifetime trustee removed or his powers suspended or modified, without process
    • SCPA 1301 Definition of a small estate
    • SCPA 1403- Persons to Be Served - Content of Process
    • SCPA § 1404 - Witnesses to be Examined; proof required
    • SCPA § 1501 Application Of Act To Trust
    • SCPA § 1502 Appointment Of Trustee
    • SCPA § 1505 Proceedings When Testamentary Trustee Is Also Executor or Administrator
    • SCPA 1602 - Ancillary Probate Based on Domicilary Probate
    • SCPA 1604 - Ancillary letters on foreign will
    • SCPA 1607 Ancillary Letters of Administration
    • SCPA 1609 - Petition for Ancillary Letters
    • SCPA 1811 Payment of Debts and Funeral Expenses
    • SCPA 1802 Effect of failure to present claim
    • SCPA 2003 Opening Safe Deposit Box
    • SCPA 2102 Proceedings For Relief Against A Fiduciary
    • SCPA 2204 Judicial settlement where recovery has been had in negligence action
    • SCPA 2205 Compulsory account and related relief on a court's own initiative or on petition who may petition
    • SCPA 2206 Compulsory Account and Related Relief; Proceedings Thereupon
    • SCPA 2208 Voluntary Account; who may petition
    • SCPA 2210 Voluntary Account - Process
    • SCPA 2225 - Kinship Proceedings
    • SCPA 2307 Commissions of Fiduciaries Other Than Trustees
    • Estate Tax Return - New York Tax Law 941
    • Tax Law 971-a
    • Tax Law 972
    • 26 USC § 2042
    • Unified Credit Against Estate Tax 26 USC 2010
    • 26 CFR 1.401(a)(9)-3 - Death before required beginning date
    • 26 CFR 1.401(a)(9)-4 - Determination of the designated beneficiary
    • Petition For Review of a Deficiency - Tax law 998
    • Abatement
    • Accounting Proceedings
    • Ademption
    • Administrator
    • Administration
    • Anticontest clause
    • Ancillary Proceedings
    • Article 17a Guardianship
    • Article 81 Guardianship
    • Asset
    • Attorney-in-fact
    • Beneficiaries
    • Bequest
    • Bond
    • Bypass Trust
    • Capacity
    • Citation
    • Codicil
    • Contest
    • Contingent Beneficiary
    • Dead Man's Statute
    • Debts of a Decedent
    • Decedent
    • Devise
    • Disinherit a Beneficiary
    • Disinheritance Clause
    • Distributee
    • Elective Share
    • Estate
    • Estate Litigation
    • Executor
    • Family Exemption
    • Fiduciary
    • Final income tax return
    • Gift
    • Grantor
    • Guardian
    • Heir
    • Insolvent Estates
    • Intestate
    • In terrorem clause
    • Joint Tenancy With Right of Survivorship
    • Kinship Hearing
    • Legacy
    • Life Planning
    • Legatee
    • Movant
    • Objections
    • Order to show cause
    • Person
    • Personal representative
    • Per Stirpes
    • Post-Deceased Distributee
    • Pre-Deceased Distributee
    • Priority of Paying Claims Against An Estate
    • Probate
    • Property
    • Residuary Estate
    • Small Estates And NY Surrogate's Court
    • Tenants in common
    • Termination of Decedent Lease
    • Testamentary Trust
    • Testator - Testatrix
    • Unclaimed Assets
    • What is a Will
    • Witness >
      • NAACP v New York