
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2042]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                         CHAPTER 11--ESTATE TAX
 
             Subchapter A--Estates of Citizens or Residents
 
                         PART III--GROSS ESTATE
 
Sec. 2042. Proceeds of life insurance

    The value of the gross estate shall include the value of all 
property--

                   (1) Receivable by the executor

        To the extent of the amount receivable by the executor as 
    insurance under policies on the life of the decedent.

                (2) Receivable by other beneficiaries

        To the extent of the amount receivable by all other 
    beneficiaries as insurance under policies on the life of the 
    decedent with respect to which the decedent possessed at his death 
    any of the incidents of ownership, exercisable either alone or in 
    conjunction with any other person. For purposes of the preceding 
    sentence, the term ``incident of ownership'' includes a reversionary 
    interest (whether arising by the express terms of the policy or 
    other instrument or by operation of law) only if the value of such 
    reversionary interest exceeded 5 percent of the value of the policy 
    immediately before the death of the decedent. As used in this 
    paragraph, the term ``reversionary interest'' includes a possibility 
    that the policy, or the proceeds of the policy, may return to the 
    decedent or his estate, or may be subject to a power of disposition 
    by him. The value of a reversionary interest at any time shall be 
    determined (without regard to the fact of the decedent's death) by 
    usual methods of valuation, including the use of tables of mortality 
    and actuarial principles, pursuant to regulations prescribed by the 
    Secretary. In determining the value of a possibility that the policy 
    or proceeds thereof may be subject to a power of disposition by the 
    decedent, such possibility shall be valued as if it were a 
    possibility that such policy or proceeds may return to the decedent 
    or his estate.

(Aug. 16, 1954, ch. 736, 68A Stat. 387; Pub. L. 94-455, title XIX, 
Sec. 1906(b)(13) (A), Oct. 4, 1976, 90 Stat. 1834.)


                               Amendments

    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary''.

                  Section Referred to in Other Sections

    This section is referred to in sections 2035, 2045, 6324 of this 
title.
