Public Law 86–141

That section 2038 of the Internal Revenue Code of 1954 (relating to the treatment of certain revocable transfers for purposes of the estate tax) is amended by adding at the end thereof the following new subsection:

“(c)“(c)

Effect of Disability in Certain Cases.—

For purposes of this section, in the case of a decedent who was (for a continuous period beginning not less than 3 months before December 31, 1947, and ending with his death) under a mental disability to relinquish a power, the term ‘power’ shall not include a power the relinquishment of which on or after January 1, 1940, and on or before December 31, 1947, would, by reason of section 1000(e) of the Internal Revenue Code of 1939, be deemed not to be a transfer of property for purposes of chapter 4 of the Internal Revenue Code of 1939.”

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Sec. 2.

The amendment made by the first section of this Act shall

53 Stat. 144.

Effective date.

apply only with respect to estates of decedents dying after August 16, 1954. No interest shall be allowed or paid on any overpayment resulting from the application of the amendment made by the first section of this Act with respect to any payment made before the date of the enactment of this Act.