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§ 8.3 FEDERAL ESTATE TAXWhen the value of a retained reversion is 5 percent or less, this type of areversion may be included back in the estate. 91Revocable Transfers. Property ownership is more than mere legal title. Ownership,in its broader sense, includes a bundle of rights tied up in the property.Legal title is but one of these rights. The other rights include beneficial rights,such as the power to control use and enjoyment of property. One may severlegal title to property and yet retain so many other powers and rights that controlof the property (through its use and enjoyment) has been retained. In thesecases, the person controlling the property is in effect the de facto owner of theproperty.The gross estate includes the value of all property over which the decedenthad a power to alter, amend, revoke, or terminate an interest in property. Anyform of a revocable transfer is includable. 92Annuities. An annuity is a contractual arrangement whereby a stream ofincome is paid in exchange for a premium payment. An annuity (periodicincome payments) is paid to a beneficiary for a stated period of time. The paymentsare usually of a specified amount (fixed dollar amount), payable at certainintervals (weekly, monthly, yearly), over a certain period of time (number ofyears or for life).The gross estate includes the value of any annuity or other payment receivableby any beneficiary by reason of surviving the decedent, under any form ofcontract or agreement (other than insurance), if any payment was payable to thedecedent, or the decedent had a right to receive a payment, alone or withanother, for life or a period not ascertainable without reference to the decedent’slife. 93 The amount of payments includable in the gross estate are the amountsproportionate to the purchase price paid by the decedent.Joint Interests. Except for spouses, the gross estate includes the value of allproperty held as joint tenants with rights of survivorship, unless it can be shownthat the interest held originally belonged to some other person. Spouses includeonly one-half of property owned as joint tenants or as tenants by the entireties.Jointly held property acquired by gift, bequest, devise, or inheritance includesonly the decedent’s fractional share of the property. 94Powers of Appointment. The gross estate includes the value of property overwhich the decedent had a general power of appointment at the time of death. 95Certain lapses are not treated as releases of general powers over property.When property can be appointed annually but does not exceed the greater of $5,000or 5 percent of the value of the asset, the lapse of such power is not considered to be91 Reg. § 20.2037-1(c).92 IRC § 2038.93 IRC § 2039.94 IRC § 2040.95 IRC § 2041. See § 8.2(d). 237