75TH CONG., 3 D SESS.-CH. 223-MAY 16, 1938 "(j) Whenever any person shall exercise a general power of appointment derived from any disposition of property, made either before or after the passage of this title, such appointment, when made, shall be deemed a transfer taxable, under the provisions of this title, in the same manner as though the property to which such appointment relates belonged absolutely to the donee of such power; and whenever any person possessing such power of appointment so derived shall omit or fail to exercise the same within the time pro- vided therefor, in whole or in part, a transfer taxable under the provisions of this title shall be deemed to take place to the extent of such omissions or failure in the same manner as though the person or persons thereby becoming entitled to the possession or enjoyment of the property to which such power related had succeeded thereto by the will of the donee of the power failing to exercise such power, taking effect at the time of such omission or failure. "(k) The doctrine of equitable conversion shall not be invoked in the assessment of taxes under this title." (b) Section 3 of title V of such Act is amended to read as follows: "SEC. 3. The appraisal thus made shall be deemed and taken to be the true value of the said property or interest therein upon which the said tax shall be paid, and the amount of said tax and the tax imposed by article II of this title shall be a lien on said property or interest therein for the period of ten years from the date of death of the decedent: Provided, however, That such lien shall not attach to any personal property sold or disposed of for value by an admin- istrator, executor, or collector, of the estate of such decedent appointed by the District Court of the United States for the District of Columbia or by a trustee appointed under a will filed with the register of wills of the District of Columbia or by order of said court, or his successor approved by said court, but a lien for said taxes shall attach on all property acquired in substitution therefor for a period of ten years after the acquisition of such substituted property: And provided further, That such lien upon such substituted property shall, upon sale by such personal representatives, be extinguished and shall reattach in the manner as provided with respect of such original property." (c) Section 7 of title V of such Act is amended to read as follows: "SEC. 7 . Every person entitled to receive property taxable under section 1 hereof, which property is not under the control of a per- sonal representative, and is over $1,000 in value, shall, within six months after the death of the decedent, report under oath to the assessor, on forms provided for that purpose, an itemized schedule of all property (real, personal, and mixed) received or to be received by such person; the market value of the same at the time of the death of the decedent and the relationship of such person to the decedent; and any other information which the assessor may require. The tax on the transfer of any such property shall be paid by such person to the collector of taxes within nine months after the date of the death of the decedent: Provided, however, That with respect to real estate passing by will or inheritance such report shall be made within fifteen months after the death of the decedent, and the tax on the transfer thereof shall be paid within eighteen months after the date of the death of the decedent." (d) Section 10 of title V of such Act is amended to read as follows: "SEC. 10. In the case of any grant, deed, devise, descent, or bequest of a life interest or term of years, the donee for life or years shall pay a tax only on the value of his interest, determined in a manner as the Commissioners by regulation may prescribe, and the donee of the future interest shall pay a tax only on his interest as based upon the Inheritance and estate taxes. General power of appointment. Doctrine of equita- ble conversion not to be invoked in tax assessment. 50 Stat. 684 . Appraisal deemed true value. Tax imposed to be a lien. Provisos. Personal property sold, etc., by an ad- ministrator of estate. Lien to attach to property acquired in substitution. Extinguishment upon sale by personal representatives; reat- tachment. 60 Stat. 685 . Property not under control of personal representative; report. Payment of tax. Proviso. Real estate passing by will, etc.; report. 50 Stat. 686. Life interest or for term of years, pay- ment of tax. 361 52 STAT.]
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