102 STAT. 3638 PUBLIC LAW 100-647—NOV. 10, 1988

"SEC. 2207B. RIGHT OF RECOVERY WHERE DECEDENT RETAINED
INTEREST.

"(a) ESTATE TAX.—

"(1) IN GENERAL.—If any part of the gross estate on which tax
has been paid consists of the value of property included in the
gross estate by reason of section 2036 (relating to transfers with
retained life estate), the decedent's estate shall be entitled to
recover from the person receiving the property the amount
which bears the same ratio to the total tax under this chapter
which has been paid as—

"(A) the value of such property, bears to
"(B) the taxable estate.

"(2) DECEDENT MAY OTHERWISE DIRECT BY WILL.—Paragraph (1)
shall not apply if the decedent otherwise directs in a provision
of his will (or a revocable trust) specifically referring to this
section.

"(b) GIFT TAX.—If for any calendar year tax is paid under chapter
12 with respect to any person by reason of property treated as
transferred by such person under section 2036(cX4), such person
shall be entitled to recover from the original transferee (as defined
in section 2036(cX4XCXii)) the amount which bears the same ratio to
the total tax for such year under chapter 12 as—

"(1) the value of such property for purposes of chapter 12,
bears to

"(2) the total amount of the taxable gifts for such year.
"(c) MORE THAN ONE RECIPIENT.—For purposes of this section, if
there is more than 1 person receiving the property, the right of
recovery shall be against each such person.

"(d) PENALTIES AND INTEREST.—In the case of penalties and in-
terest attributable to the additional taxes described in subsections
(a) and (b), rules similar to the rules of subsections (a), (b), and (c)
shall apply.

"(e) No EIGHT OF RECOVERY AGAINST CHARITABLE REMAINDER
TRUSTS.—No person shall be entitled to recover any amount by
reason of this section from a trust to which section 664 applies
(determined without regard to this section)."

(2) CONFORMING AMENDMENT.—The table of sections for sub-
chapter C of chapter 11 of the 1986 Code is amended by insert-
ing after the item relating to section 2207A the following new
item:

"Sec. 2207B. Right of recovery where decedent retained interest."

(g) TREATMENT OF CONSIDERATON.—

(1) Paragraph (2) of section 2036(c) of the 1986 Code is
amended to read as follows:
"(2) SPECIAL RULES FOR CONSIDERATION FURNISHED BY FAMILY

MEMBERS.—

"(A) IN GENERAL.—The exception contained in subsection
(a) for a bona fide sale shall not apply to a transfer described
in paragraph (1) if such transfer is to a member of the
transferor's family.

"(B) TREATMENT OF CONSIDERATION.—

(i) IN GENERAL.—In the case of a transfer described in
paragraph (1), if—

"(I) a member of the transferor's family provides
consideration in money or money's worth for such
member's interest in the enterprise, and