[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR25.2523(d)-1]

[Page 610]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 25_GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954--Table of Contents
 
Sec.  25.2523(d)-1  Joint interests.

    Section 2523(d) provides that if a property interest is transferred 
to the donee spouse as sole joint tenant with the donor or as a tenant 
by the entirety, the interest of the donor in the property which exists 
solely by reason of the possibility that the donor may survive the donee 
spouse, or that there may occur a severance of the tenancy, is not for 
the purposes of section 2523(b), to be considered as an interest 
retained by the donor in himself. Under this provision, the fact that 
the donor may, as surviving tenant, possess or enjoy the property after 
the termination of the interest transferred to the donee spouse does not 
preclude the allowance of the marital deduction with respect to the 
latter interest. Thus, if the donor purchased real property in the name 
of the donor and the donor's spouse as tenants by the entirety or as 
joint tenants with rights of survivorship, a marital deduction is 
allowable with respect to the value of the interest of the donee spouse 
in the property (subject to the limitations set forth in Sec.  
25.2523(a)-1). See paragraph (c) of Sec.  25.2523(b)-1, and section 
2524.

[T.D. 7238, 37 FR 28734, Dec. 29, 1972, as amended by T.D. 8522, 59 FR 
9659, Mar. 1, 1994]