[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6324-1]

[Page 258-259]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Collection
 
Sec. 301.6324-1  Special liens for estate and gift taxes; personal 
liability of transferees and others.

    (a) Estate tax. (1) A lien for estate tax attaches at the date of 
the decedent's death to every part of the gross estate, whether or not 
the property comes into possession of the duly qualified executor or 
administrator. The lien attaches to the extent of the tax shown to be 
due by the return and of any deficiency in tax found to be due upon 
review and audit. If the estate tax is not paid when due, then the 
spouse, transferee, trustee (except the trustee of an employee's trust 
which meets the requirements of section 401(a)), surviving tenant, 
person in possession of the property by reason of the exercise, 
nonexercise, or release of a power of appointment, or beneficiary, who 
receives, or has on the date of the decedent's death, property included 
in the gross estate under sections 2034 to 2042, inclusive, shall be 
personally liable for the tax to the extent of the value, at the time of 
the decedent's death, of the property.
    (2) Unless the tax is paid in full or becomes unenforceable by 
reason of lapse of time, and except as otherwise provided in paragraph 
(c) of this section, the lien upon the entire property constituting the 
gross estate continues for a period of 10 years after the decedent's 
death, except that the lien shall be divested with respect to--
    (i) The portion of the gross estate used for the payment of charges 
against the estate and expenses of its administration allowed by any 
court having jurisdiction thereof;

[[Page 259]]

    (ii) Property included in the gross estate under sections 2034 to 
2042, inclusive, which is transferred by (or transferred by the 
transferee of) the spouse, transferee, trustee, surviving tenant, person 
in possession of the property by reason of the exercise, nonexercise, or 
release of a power of appointment, or beneficiary to a purchaser or 
holder of a security interest. In such case a like lien attaches to all 
the property of the spouse, transferee, trustee, surviving tenant, 
person in possession, beneficiary, or transferee of any such person, 
except the part which is transferred to a purchaser or a holder of a 
security interest. See section 6323(h) (1) and (6) and the regulations 
thereunder, respectively, for the definitions of ``security interest'' 
and ``purchaser'';
    (iii) The portion of the gross estate (or any interest therein) 
which has been transferred to a purchaser or holder of a security 
interest if payment is made of the full amount of tax determined by the 
district director pursuant to a request of the fiduciary (executor, in 
the case of the estate of a decedent dying before January 1, 1971) for 
discharge from personal liability as authorized by section 2204 
(relating to discharge of fiduciary from personal liability) but there 
is substituted a like lien upon the consideration received from the 
purchaser or holder of a security interest; and
    (iv) Property as to which the district director has issued a 
certificate releasing a lien under section 6325(a) and the regulations 
thereunder.
    (b) Lien for gift tax. Except as provided in paragraph (c) of this 
section, a lien attaches upon all gifts made during the period for which 
the return was filed (see Sec. 25.6019-1 of this chapter) for the 
amount of tax imposed upon the gifts made during such period. The lien 
extends for a period of 10 years from the time the gifts are made, 
unless the tax is sooner paid in full or becomes unenforceable by reason 
of lapse of time. If the tax is not paid when due, the donee of any gift 
becomes personally liable for the tax to the extent of the value of his 
gift. Any part of the property comprised in the gift transferred by the 
donee (or by a transferee of the donee) to a purchaser or holder of a 
security interest is divested of the lien, but a like lien, to the 
extent of the value of the gift, attaches to all the property (including 
after-acquired property) of the donee (or the transferee) except any 
part transferred to a purchaser or holder of a security interest. See 
section 6323(h) (1) and (6) and the regulations thereunder, 
respectively, for the definitions of ``security interest'' and 
``purchaser.''

    (c) Exceptions. (1) A lien described in either paragraph (a) or 
paragraph (b) of this section is not valid against a mechanic's lienor 
(as defined in section 6323(h) (2) and the regulations thereunder) and, 
subject to the conditions set forth under section 6323(b) (relating to 
protection for certain interests even though notice filed), is not valid 
with respect to any lien or interest described in section 6323(b) and 
the regulations thereunder.

    (2) If a lien described in either paragraph (a) or paragraph (b) of 
this section is not valid against a lien or security interest (as 
defined in section 6323(h) (1) and the regulations thereunder), the 
priority of the lien or security interest extends to any item described 
in section 6323(e) (relating to priority of interest and expenses) to 
the extent that, under local law, the item has the same priority as the 
lien or security interest to which it relates.

    (d) Application of lien imposed by section 6321. The general lien 
under section 6321 and the special lien under subsection (a) or (b) of 
section 6324 for the estate or gift tax are not exclusive of each other, 
but are cumulative. Each lien will arise when the conditions precedent 
to the creation of such lien are met and will continue in accordance 
with the provisions applicable to the particular lien. Thus, the special 
lien may exist without the general lien being in force, or the general 
lien may exist without the special lien being in force, or the general 
lien and the special lien may exist simultaneously, depending upon the 
facts and pertinent statutory provisions applicable to the respective 
liens.


[T.D. 7238, 37 FR 28740, Dec. 29, 1972]

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