(D) Qualified organization defined

For purposes of this paragraph, the term "qualified organization” means any organization described in section 501(c)(3) other than a private foundation (as defined in section 509). For purposes of the preceding sentence, a private operating foundation (as defined in section 4942(j)(3)) shall not be treated as a private foundation.

(f) Cross references

(1) For option as to time for valuation for purpose of deduction under this section, see section 2032.

(2) For exemption of gifts and bequests to or for the benefit of Library of Congress, see section 5 of the Act of March 3, 1925, as amended (2 U.S.C. 161).

(3) For treatment of gifts and bequests for the benefit of the Office of Naval Records and History as gifts or bequests to or for the use of the United States, see section 7222 of title 10, United States Code.

(4) For treatment of gifts and bequests to or for the benefit of National Park Foundation as gifts or bequests to or for the use of the United States, see section 8 of the Act of December 18, 1967 (16 U.S.C. 191).

(5) For treatment of gifts, devises, or bequests accepted by the Secretary of State, the Director of the International Communication Agency, or the Director of the United States International Development Cooperation Agency as gifts, devises, or bequests to or for the use of the United States, see section 25 of the State Department Basic Authorities Act of 1956.

(6) For treatment of gifts or bequests of money accepted by the Attorney General for credit to "Commissary Funds, Federal Prisons," as gifts or bequests to or for the use of the United States, see section 4043 of title 18, United States Code.

(7) For payment of tax on gifts and bequests of United States obligations to the United States, see section 3113(e) of title 31, United States Code.

(8) For treatment of gifts and bequests for benefit of the Naval Academy as gifts or bequests to or for the use of the United States, see section 6973 of title 10, United States Code.

(9) For treatment of gifts and bequests for benefit of the Naval Academy Museum as gifts or bequests to or for the use of the United States, see section 6974 of title 10, United States Code.

(10) For exemption of gifts and bequests received by National Archives Trust Fund Board, see section 2308 of title 44, United States Code.

(11) For treatment of gifts and bequests to or for the use of Indian tribal governments (or their subdivisions), see section 7871.

(Aug. 16, 1954, ch. 736, 68A Stat. 390; Aug. 6, 1956, ch. 1020, § 1, 70 Stat. 1075; Sept. 2, 1958, Pub. L. 85-866, title I, § 30(d), 72 Stat. 1631; Dec. 30, 1969, Pub. L. 91-172, title II, § 201(d)(1), (4)(A), 83 Stat. 560, 561; Dec. 31, 1970, Pub. L. 91-614, title I, § 101(c), 84 Stat. 1836; Oct. 26, 1974, Pub. L. 93-483, § 3(a), 88 Stat. 1457; Oct. 4, 1976, Pub. L. 94-455, title XIII, §§ 1304(a), 1307(d)(1)(B)(ii), (C), 1313(b)(2), title XIX, §§ 1902(a)(4), (12)(A), 1906(b)(13) (A), title XX, § 2009(b)(4)(B), (C), title XXI, § 2124(e)(2), 90 Stat. 1715, 1727, 1730, 1804, 1805, 1834, 1894, 1919; Nov. 6, 1978, Pub. L. 95-600, title V, § 514(a), 92 Stat. 2883; Apr. 1, 1980, Pub. L. 96-222, title I, § 105(a)(4)(A), 94 Stat. 219; Oct. 17, 1980, Pub. L. 96-465, title II, § 2206(e)(4), 94 Stat. 2163; Dec. 28, 1980, Pub. L. 96-605, title III, § 301(a), 94 Stat. 3530; Aug. 13, 1981, Pub. L. 97-34, title IV, § 423(a), 95 Stat. 316; Sept. 3, 1982, Pub. L. 97-248, title II, § 286(b)(2), 96 Stat. 570; Sept. 13, 1982, Pub. L. 97-258, § 3(f)(1), (2), 96 Stat. 1064; Jan. 14, 1983,

Pub. L. 97-473, title II, § 202(b)(5), 96 Stat. 2610.)

REFERENCES IN TEXT

Section 25 of the State Department Basic Authorities Act of 1956, referred to in subsec. (f)(5), is classified to section 2697 of Title 22, Foreign Relations and Intercourse.

AMENDMENTS

1983-Subsec. (f)(11). Pub. L. 97-473 added par. (11). 1982-Subsec. (a). Pub. L. 97-248 added provision that rules similar to the rules of section 501(j) of this title shall apply for purposes of par. (2).

Subsec. (f)(6). Pub. L. 97-258, § 3(f)(1), substituted "section 4043 of title 18, United States Code" for "section 2 of the Act of May 15, 1952, as amended by the Act of July 9, 1952 (31 U.S.C. 725s-4)".

Subsec. (f)(7). Pub. L. 97-258, § 3(f)(2), substituted "section 3113(e) of title 31, United States Code" for "section 24 of the Second Liberty Bond Act (31 U.S.C. 757e)".

1981-Subsec. (e)(4). Pub. L. 97-34 added par. (4). 1980-Subsec. (e)(3). Pub. L. 96-605 substituted “December 31, 1978" for "December 31, 1977" and "December 31, 1981" for "December 31, 1978" in two places.

Pub. L. 96-222 substituted "such subparagraph (A) or (B)" for "such subparagraph (a) or (B)" and "so that the interest" for "so that interest".

Subsec. (f)(5). Pub. L. 96-465, among other changes, added references to the Director of the International Communication Agency and the Director of the United States International Development Cooperation Agency and substituted reference to section 25 of the State Department Basic Authorities Act of 1956 for reference to section 1021(e) of the Foreign Service Act of 1946.

L.

1978-Subsec. (e)(3). Pub. L. 95-600 added "or (B)" preceding "of paragraph (2)", substituted "on or before December 31, 1978" for "on or before December 31, 1977" wherever appearing and "which meets the requirements of such subparagraph (a) or (B) (as the case may be)," for "which is a charitable remainder annuity trust, a charitable remainder unitrust (described in section 664), or a pooled income fund (described in section 642(c)(5)),". 1976-Subsec. (a). Pub. 94-455, §§ 1307(d)(1)(B)(ii), (C), 1313(b)(2), 1902(a)(12)(A), 2009(b)(4)(B), (C), struck out "(including the interest which falls into any such bequest, legacy, devise, or transfer as a result of an irrevocable disclaimer of a bequest, legacy, devise, transfer, or power, if the disclaimer is made before the date prescribed for the filing of the estate tax return)" following "or transfers" in the provisions preceding par. (1), struck out "Territory," following "State," in par. (1), added “, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment)," following "encouragement of art" and substituted "which is not disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation," for "no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation," in par. (2), substituted "such trust, fraternal society, order, or association would not be disqualified for tax exemption under section 501(c)(3) by reason of attempting to influence legislation," for "no substantial part of the activities of such trustee or trustees, or of such fraternal society, order, or association, is carrying on propaganda, or otherwise attempting, to influence legislation," in par. (3), and, in the provisions following par. (4), substituted "a qualified disclaimer" for "an irrevocable disclaimer" and "such qualified disclaimer" for "such irrevocable disclaimer".

Subsec. (b). Pub. L. 94-455, § 1902(a)(4)(A), struck out provisions under which a bequest in trust, if the surviving spouse of the decedent was entitled for life to all of the net income from the trust and the surviving spouse had a power of appointment over the corpus of that trust exercisable by will in favor of, among others, organizations described in subsec. (a)(2), could be deemed a transfer to the organization by the decedent under certain conditions.

Subsec. (e)(2). Pub. L. 94-455, § 2124(e)(2), substituted (other than an interest described in section 170(f)(3)(B))" for "(other than a remainder interest in a personal residence or farm or an undivided portion of the decedent's entire interest in property)" in the provisions preceding subpar. (A).

Subsec. (e)(3). Pub. L. 94-455, § 1304(a), 1906(b)(13)(A), substituted "will executed before December 31, 1977," for "will executed before September 21, 1974," and "amended or conformed on or before December 31, 1977, or, if later, on or before the 30th day after the date on which judicial proceedings begun on or before December 31, 1977" for "amended or conformed on or before December 31, 1975, or, if later, on or before the 30th day after the date on which judicial proceedings begun on or before December 31, 1975" and struck out "or his delegate" following "Secretary".

Subsec. (f). Pub. L. 94-455, § 1902(a)(4)(B), extended par. (2) by adding reference to gifts, struck out par. (3) which made a cross reference to section 2 of the Act of Aug. 8, 1946 (60 Stat. 924; 5 U.S.C. 393) for construction of bequests for benefit of the library of the Post Office Department as bequests to or for the use of the United States, redesignated pars. (4)-(11) as (3)-(10), respectively, substituted "For treatment of gifts and bequests for the benefit of the Office of Naval Records and History as gifts or bequests to or for the use of the United States, see section 7222 of title 10, United States Code" for "For exemption of bequests for benefit of Office of Naval Records and Library, Navy Department, see section 2 of the Act of March 4, 1937 (50 Stat. 25; 5 U.S.C. 419b)" in par. (3) as so redesignated, substituted "For treatment of gifts and bequests to or for the benefit of National Park Foundation as gifts or bequests to or for the use of the United States, see section 8 of the Act of December 18, 1967 (16 U.S.C. 191)" for "For exemption of bequests to or for benefit of National Park Service, see section 5 of the Act of July 10, 1935 (49 Stat. 478; 16 U.S.C. 19c)" in par. (4) as so redesignated, and corrected obsolete and inaccurate references in pars. (5)-(10) as so redesignated.

1974 Subsec. (e)(3). Pub. L. 93-483 added par. (3). 1970 Subsec. (b)(2)(C). Pub. L. 91-614 substituted "6 months" for "one year".

1969-Subsec. (a)(2). Pub. L. 91-172, § 201(d)(4)(A) (i), added non-participation and non-intervention in political campaigns as an additional qualification. Subsec. (a)(3). Pub. L. 91-172, § 201(d)(4)(A)(ii), added non-participation and non-intervention in political campaigns as an additional qualification.

Subsec. (e). Pub. L. 91-172, § 201(d)(1), substituted substantive provisions for simple reference to sections 503 and 681 of this title in which such substantive provisions were formerly set out.

1958-Subsec. (e). Pub. L. 85-866 substituted "503" for "504".

1956-Subsec. (b). Act Aug. 6, 1956, designated original paragraph as “(1) General rule." and added par. (2).

CHANGE OF NAME

The International Communication Agency, and the Director thereof, were redesignated the United States Information Agency, and the Director thereof, by section 303 of Pub. L. 97-241, title III, Aug. 24, 1982, 96 Stat. 291, set out as a note under section 1461 of Title 22, Foreign Relations and Intercourse.

EFFECTIVE AND TERMINATION DATES OF 1983 AMENDMENT

Amendments made by title II of Pub. L. 97-473 insofar as they relate to this chapter [amending sections 2055 and 2106 of this title] applicable to estates of decedents dying after Dec. 31, 1982, and before Jan. 1, 1985, see section 204(3) of Pub. L. 97-473, set out as an Effective and Termination Dates note under section 7871 of this title.

EFFECTIVE DATE OF 1982 AmendmenT

Amendment by Pub. L. 97-248 effective Oct. 5, 1976, see section 286(c) of Pub. L. 97-248, set out as a note under section 501 of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 423(c)(1) of Pub. L. 97-34 provided that: "The amendment made by subsection (a) [amending this section] shall apply to the estates of decedents dying after December 31, 1981."

EFFECTIVE Date of 1980 AMENDMENTS

Section 301(b)(1) of Pub. L. 96-605 provided that: "The amendment made by subsection (a) [amending this section] shall apply in the case of decedents dying after December 31, 1969."

Amendment by Pub. L. 96-465 effective Feb. 15, 1981, except as otherwise provided, see section 2403 of Pub. L. 96-465, set out as an Effective Date note under section 3901 of Title 22, Foreign Relations and Inter

course.

Amendment by Pub. L. 96-222 effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, Pub. L. 95-600, to which such amendment relates, see section 201 of Pub. L. 96-222, set out as a note under section 43 of this title.

EXTENSION OF 1978 AMENDMENT; CHARITABLE LEAD TRUSTS AND CHARITABLE REMAINDER TRUSTS IN CASE OF INCOME AND GIFT TAXES

Section 301(b)(2) of Pub. L. 96-605 provided that: "Section 514(b) [section 514(b) of Pub. L. 95-600, set out as a note below] (and section 514(c) [section 514(c) of Pub. L. 95-600, set out as a note below] insofar as it relates to section 514(b)) of the Revenue Act of 1978 shall be applied as if the amendment made by subsection (a) [amending subsec. (e)(3) of this section] had been included in the amendment made by section 514(a) of such Act [section 514(a) of Pub. L. 95-600, amending subsec. (e)(3) of this section]."

EFFECTIVE DATE OF 1978 AMENDMENT; CHARITABLE LEAD TRUSTS AND CHARITABLE REMAINDER TRUSTS IN CASE OF INCOME AND GIFT TAXES

Section 514(c) of Pub. L. 95-600, as added Apr. 1, 1980, Pub. L. 96-222, title I, § 105(a)(4)(B), 94 Stat. 219, provided that:

"(1) FOR SUBSECTION (a).-The amendment made by subsection (a) [amending subsec. (e)(3) of this section] shall apply in the case of decedents dying after December 31, 1969.

"(2) FOR SUBSECTION (b).-Subsection (b) [section 514(b) of Pub. L. 95-600, set out as a note below]

"(A) insofar as it relates to section 170 of the Internal Revenue Code of 1954 shall apply to transfers in trust and contributions made after July 31, 1969, and

"(B) insofar as it relates to section 2522 of the Internal Revenue Code of 1954 shall apply to transfers made after December 31, 1969."

EFFECTIVE Date of 1976 AMENDMENT Section 1304(c) of Pub. L. 94-455 provided that: "The amendments made by this section [amending subsec. (e)(3) of this section] shall apply in the case of decedents dying after December 31, 1969."

Amendment of subsecs. (a)(2), (a)(3) by section 1307(d)(1)(B)(ii), (C) of Pub. L. 94-455, applicable to the estates of decedents dying after Dec. 31, 1976, see section 1307(e) of Pub. L. 94-455, set out as a note under section 501 of this title.

Amendment of subsec. (a)(2) by section 1313(b)(2) of Pub. L. 94-455 applicable on the day following Oct. 4, 1976, see section 1313(d) of Pub. L. 94-455, set out as a note under section 501 of this title.

Amendment of subsecs. (b) and (f) by section 1902(a)(4) of Pub. L. 94-455 applicable in the case of estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of Pub. L. 94-455, set out as a note under section 2011 of this title.

Amendment of subsec. (a)(1) by section 1902(a)(12)(A) of Pub. L. 94-455 applicable with respect to gifts made after Dec. 31, 1976, see section 1902(c)(2) of Pub. L. 94-455, set out as a note under section 2501 of this title.

Amendment of subsec. (a) by section 2009(b)(4)(B), (C) of Pub. L. 94-455 applicable with respect to transfers creating an interest in the person disclaiming made after Dec. 31, 1976, see section 2009(e)(2) of Pub. L. 94-455, set out as a note under section 2036 of this title.

Amendment of subsec. (e)(2) by section 2124(e)(2) of Pub. L. 94-455 applicable with respect to contributions or transfers made after June 13, 1976, see section 2124(e)(4) of Pub. L. 94-455, set out as a note under section 170 of this title.

EFFECTIVE Date of 1974 AMENDMENT

Section 3(b) of Pub. L. 93-483 provided that: "The amendment made by subsection (a) [adding subsec. (e)(3) of this section] shall apply with respect to estates of decedents dying after December 31, 1969."

EFFECTIVE Date of 1970 AMENDMENT

Amendment by Pub. L. 91-614 applicable with respect to decedents dying after Dec. 31, 1970, see section 101(j) of Pub. L. 91-614, set out as an Effective Date note under section 2032 of this title.

EFFECTIVE DATE OF 1969 AMENDMENT Amendment of subsecs. (a)(2), (3) by section 201(d)(4)(A) of Pub. L. 91-172 applicable to gifts and transfers made after Dec. 31, 1969, see section 201 (g)(4)(E) of Fub. L. 91-172, set out as a note under section 170 of this title.

Amendment of subsec. (e) by section 201(d)(1) of Pub. L. 91-172 applicable in the case of decedents dying after Dec. 31, 1969, with specified exceptions, see section 201(g)(4) of Pub. L. 91-172, set out as a note under section 170 of this title.

EFFECTIVE Date of 1956 AMENDMENT

Section 3 of act Aug. 6, 1956, provided that: "The amendments made by this Act [amending sections 2056(b) and 6503(e), (f) of this title] shall apply in the case of decedents dying after August 16, 1954." CHARITABLE LEAD TRUSTS AND CHARITAble RemaindER TRUSTS IN Case of Income and Gift TAXES Section 514(b) of Pub. L. 95-600 provided that: "Under regulations prescribed by the Secretary of the Treasury or his delegate, in the case of trusts created before December 31, 1977, provisions comparable to section 2055(e)(3) of the Internal Revenue Code of 1954 (as amended by subsection (a)) shall be deemed to be included in sections 170 and 2522 of the Internal Revenue Code of 1954."

EXTENSION OF PERIOD FOR FILING CLAIM FOR REFUND Section 1304(b) of Pub. L. 94-455 provided that: "A claim for refund or credit of an overpayment of the tax imposed by section 2001 of the Internal Revenue Code of 1954 allowable under section 2055(e)(3) of such Code (as amended by subsection (a)) shall not be

denied because of the expiration of the time for filing such a claim under section 6511(a) if such claim is filed not later than June 30, 1978."

CROSS REFERENCES

Alternate valuation of gross estate, see section 2032 of this title.

Credit for taxes, see sections 2012, 2013, 2014 of this title.

Disallowance of deductions, income tax, see sections 503, 681 of this title.

Suspension of running of period of limitations, see section 6503 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 508, 2011, 2012, 2013, 2014, 2032, 2053, 2106, 2522, 2602, 4947, 4948, 7871 of this title; title 12 section 3051; title 20 section 76m; title 22 sections 2876, 3307.

§ 2056. Bequests, etc., to surviving spouse

(a) Allowance of marital deduction

For purposes of the tax imposed by section 2001, the value of the taxable estate shall, except as limited by subsection (b), be determined by deducting from the value of the gross estate an amount equal to the value of any interest in property which passes or has passed from the decedent to his surviving spouse, but only to the extent that such interest is included in determining the value of the gross estate. (b) Limitation in the case of life estate or other terminable interest

(1) General rule

Where, on the lapse of time, on the occurrence of an event or contingency, or on the failure of an event or contingency to occur, an interest passing to the surviving spouse will terminate or fail, no deduction shall be allowed under this section with respect to such interest

(A) if an interest in such property passes or has passed (for less than an adequate and full consideration in money or money's worth) from the decedent to any person other than such surviving spouse (or the estate of such spouse); and

(B) if by reason of such passing such person (or his heirs or assigns) may possess or enjoy any part of such property after such termination or failure of the interest so passing to the surviving spouse;

and no deduction shall be allowed with respect to such interest (even if such deduction is not disallowed under subparagraphs (A) and (B))—

(C) if such interest is to be acquired for the surviving spouse, pursuant to directions of the decedent, by his executor or by the trustee of a trust.

For purposes of this paragraph, an interest shall not be considered as an interest which will terminate or fail merely because it is the ownership of a bond, note, or similar contractual obligation, the discharge of which would not have the effect of an annuity for life or for a term.

(2) Interest in unidentified assets

Where the assets (included in the decedent's gross estate) out of which, or the proceeds of which, an interest passing to the surviving spouse may be satisfied include a particular asset or assets with respect to which no deduction would be allowed if such asset or assets passed from the decedent to such spouse, then the value of such interest passing to such spouse shall, for purposes of subsection (a), be reduced by the aggregate value of such particular assets.

(3) Interest of spouse conditional on survival for limited period

For purposes of this subsection, an interest passing to the surviving spouse shall not be considered as an interest which will terminate or fail on the death of such spouse if—

(A) such death will cause a termination or failure of such interest only if it occurs within a period not exceeding 6 months after the decedent's death, or only if it occurs as a result of a common disaster resulting in the death of the decedent and the surviving spouse, or only if it occurs in the case of either such event; and

(B) such termination or failure does not in fact occur.

(4) Valuation of interest passing to surviving spouse

In determining for purposes of subsection (a) the value of any interest in property passing to the surviving spouse for which a deduction is allowed by this section

(A) there shall be taken into account the effect which the tax imposed by section 2001, or any estate, succession, legacy, or inheritance tax, has on the net value to the surviving spouse of such interest; and

(B) where such interest or property is encumbered in any manner, or where the surviving spouse incurs any obligation imposed by the decedent with respect to the passing of such interest, such encumbrance or obligation shall be taken into account in the same manner as if the amount of a gift to such spouse of such interest were being determined.

(5) Life estate with power of appointment in surviving spouse

In the case of an interest in property passing from the decedent, if his surviving spouse is entitled for life to all the income from the entire interest, or all the income from a specific portion thereof, payable annually or at more frequent intervals, with power in the surviving spouse to appoint the entire interest, or such specific portion (exercisable in favor of such surviving spouse, or of the estate of such surviving spouse, or in favor of either, whether or not in each case the power is exercisable in favor of others), and with no power in any other person to appoint any part of the interest, or such specific portion, to any person other than the surviving spouse

(A) the interest or such portion thereof so passing shall, for purposes of subsection (a), be considered as passing to the surviving spouse, and

(B) no part of the interest so passing shall, for purposes of paragraph (1)(A), be considered as passing to any person other than the surviving spouse.

This paragraph shall apply only if such power in the surviving spouse to appoint the entire interest, or such specific portion thereof, whether exercisable by will or during life, is exercisable by such spouse alone and in all events.

(6) Life insurance or annuity payments with power of appointment in surviving spouse

In the case of an interest in property passing from the decedent consisting of proceeds under a life insurance, endowment, or annuity contract, if under the terms of the contract such proceeds are payable in installments or are held by the insurer subject to an agreement to pay interest thereon (whether the proceeds, on the termination of any interest payments, are payable in a lump sum or in annual or more frequent installments), and such installment or interest payments are payable annually or at more frequent intervals, commencing not later than 13 months after the decedent's death, and all amounts, or a specific portion of all such amounts, payable during the life of the surviving spouse are payable only to such spouse, and such spouse has the power to appoint all amounts, or such specific portion, payable under such contract (exercisable in favor of such surviving spouse, or of the estate of such surviving spouse, or in favor of either, whether or not in each case the power is exercisable in favor of others), with no power in any other person to appoint such amounts to any person other than the surviving spouse—

(A) such amounts shall, for purposes of subsection (a), be considered as passing to the surviving spouse, and

(B) no part of such amounts shall, for purposes of paragraph (1)(A), be considered as passing to any person other than the surviving spouse.

This paragraph shall apply only if, under the terms of the contract, such power in the surviving spouse to appoint such amounts, whether exercisable by will or during life, is exercisable by such spouse alone and in all events.

(7) Election with respect to life 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—