§ 2601. Tax imposed

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1976

   Pub. L. 94–455 title XX § 2006(a) · 90 Stat. 1520

   Enacted · 26 U.S.C. § 2601

   Added Pub. L. 94–455, title XX, § 2006(a), Oct. 4, 1976, 90 Stat. 1879

   Source evidence

   Code source credit
   Added Pub. L. 94–455, title XX, § 2006(a), Oct. 4, 1976, 90 Stat. 1879

   Enacted provision · exact public law section
   (a) Imposition of Tax.— Subtitle B (relating to estate and. gift taxes) is amended by adding at the end thereof the following new chapter: “CHAPTER 13— TAX ON CERTAIN GENERATION-SKIPPING TRANSFERS “Subchapter A. Tax imposed. “Subchapter B. Definitions and special rules. “Subchapter C. Administration. “Subchapter A— Tax Imposed “Sec. 2601. Tax imposed. “Sec. 2602. Amount of lax. “Sec. 2603. Liability for tax. “SEC. 2601. TAX IMPOSED. “A tax is hereby imposed on every generation-skipping transfer in the amount determined under section 2602. “SEC. 2602. AMOUNT OF TAX. “(a) General Rule.— The amount of the tax imposed by section 2601 with respect to any transfer shall be the excess of— “(1) a tentative tax computed in accordance with the rate schedule set forth in section 2001 (c)(as in effect on the date Ante, p. 1846. of transfer) on the sum of— “(A) the fair market value of the property transferred determined as of the date of transfer (or in the case of an election under subsection (d), as of the applicable valuation date prescribed by section 2032), “(B) the aggregate fair market value (determined for purposes of this chapter) of all prior transfers of the deemed transferor to which this chapter applied, “(C) the amount of the adjusted taxable gifts (within the meaning of section 2001(b)) made by the deemed transferor before this transfer, and “(D) if the deemed transferor has died at the same time as, or before, this transfer, the taxable estate of the deemed transferor, over “(2) a tentative tax (similarly computed) on the sum of the amounts determined under subparagraphs (B), (C), and (D) of paragraph (1). “(b) Multiple Simultaneous Transfers.— If two or more transfers which are taxable under section 2601 and which have the same deemed Supra. transferor occur by reason of the same event, the tax imposed by section 2601 on each such transfer shall be the amount which bears the same ratio to— “(1) the amount of the tax which would be imposed by section 2601 if the aggregate of such transfers were a single transfer, as “(2) the fair market value of the property transferred in such transfer bears to the aggregate fair market value of all property transferred in such transfers. “(c) Deductions, Credits, Etc.— “(1) General rule.— Except as otherwise provided in this subsection, no deduction, exclusion, exemption, or credit shall be Ante, p. 1879. allowed against the tax imposed by section 2601. “(2) Charitable deductions allowed.— The deduction under section 2055, 2106(a)(2), or 2522, whichever is appropriate, shall be allowed in determining the tax imposed by section 2601. “(3) Unused portion of unified credit.— If the generation-skipping transfer occurs at the same time as, oi‘ after, the death of the deemed transferor, then the portion of the credit under Ante, p. 1848. section 2010(a) (relating to unified credit) which exceeds the sum of— “(A) the tax imposed by section 2001, and “(B) the taxes theretofore imposed by section 2601 with respect to this deemed transferor, shall be allowed as a credit against the tax imposed by section 2601. The amount of the credit allowed by the preceding sentence shall not exceed the amount of the tax imposed by section 2601. “(4) Credit for tax on prior transfers.— The credit under section 2013 (relating to credit for tax on prior transfers) shall be allowed against the tax imposed by section 2601. For purposes of the preceding sentence, section 2013 shall be applied as if so much of the property subject to tax under section 2601 as is not taken into account for purposes of determining the credit allowable by section 2013 with respect to the estate of the deemed transferor passed from the transferor (as defined in section 2013) to the deemed transferor. “(5) Coordination with estate tax.— “(A) Adjustments to marital deduction.— If the generation-skipping transfer occurs at the same time as, or within 9 months after, the death of the deemed transferor, for purposes of section 2056 (relating to bequests, etc., to surviving spouse), the value of the gross estate of the deemed transferor shall be deemed to be increased by the amount of such transfer. “(B) Certain expenses attributable to generation-skip-ping transfer.— If the generation-skipping transfer occurs at the same time as, or after, the death of the deemed transferor, for purposes of this section, the amount taken into account with respect to such transfer shall be reduced— “(i) in the case of a taxable termination, by any item referred to in section 2053 or 2054 to the extent that a deduction would have been allowable under such section for such item if the amount of the trust had been includible in the deemed transferor’s gross estate and if the deemed transferor had died immediately before such transfer, or “(ii) in the case of a taxable distribution, by any expense incurred in connection with the determination, collection, or refund of the tax imposed by section 2601 on such transfer. “(C) Credit for state inheritance tax.— If the generation-skipping transfer occurs at the same time as, or after, the death of the deemed transferor, there shall be allowed as a credit against the tax imposed by section 2601 an amount equal to that portion of the estate, inheritance, legacy, or succession tax actually paid to any State or the District of Columbia in respect of any property included in the genera-tion-skipping transfer, but only to the extent of the lesser of— “(i) that portion of such taxes which is levied on such transfer, or “(ii) the excess of the limitation applicable under section 2011 (b) if the adjusted taxable estate of the decedent had been increased by the amount of the transfer and all prior gene ration-skipping transfers to which this subparagraph applied which had the same deemed transferor, over the sum of the amount allowable as a credit under section 2011 with respect to the estate of the decedent plus the aggregate amounts allowable under this subparagraph with respect to such prior generation-skipping transfers. “(d) Alternate Valuation.— “(1) In general.— In the case of— “(A) 1 or more generation-skipping transfers from the same trust which have the same deemed transferor and which are taxable terminations occurring at the same time as the death of such deemed transferor; or “(B) 1 or more generation-skipping transfers from the same trust with different deemed transferors— “(i) which are taxable terminations occurring on the same day; and “(ii) which would, but for section 2613(b)(2), have occurred at the same time as the death of the individuals who are the deemed transferors with respect to the transfers; the trustee may elect to value all of the property transferred in such transfers in accordance with section 2032. “(2) Special holes.— If the trustee makes an election under paragraph (1) with respect, to any generation-skipping transfer, section 2032 shall be applied by taking into account (in lieu of the date of the decedent’s death) the following date: “(A) in the case of any gene ration-skip pin g transfer described in paragraph (1)(A), the date of the death of the deemed transferor described in such paragraph, or “(B) in the case of any generation-skipping transfer described in paragraph (1)(B), the date on which such transfer occurred. “(e) Transfers Within 3 Years of Death of Deemed Transferor.— Under regulations prescribed by the Secretary, the principles of section 2035 shall apply with respect to transfers made during the 3-year period ending on the date of the deemed transferor’s death. in the case of any transfer to which this subsection applies, the amount of the tax imposed by this chapter shall be determined as if the transfer occurred after the death of the deemed transferor and appropriate adjustments shall be made with respect to the amount of any prior transfer which is taken into account under subparagraph (B) or (C) of subsection (a)(1). “SEC. 2603. LIABILITY FOR TAX. “(a) Personal Liability.— “(1) In general.— If the tax imposed by section 2601 is not Ante, p. 1879. paid, when due then— “(A) except to the extent provided in paragraph (2), the trustee shall be personally liable for any portion of such tax which is attributable to a taxable termination, and “(B) the distributee of the property shall be personally liable for such tax to the extent provided in paragraph (3). “(2) Limitation of personal liability of trustee who relies on certain information furnished by the secretary.— “(A) Information with respect to rates.— The trustee shall not be personally liable for any increase in the tax imposed by section 2601 which is attributable to the application to the transfer of rates of tax which exceeds the rates of tax furnished by the Secretary to the trustee as being the rates at which the transfer may reasonably be expected to be taxed. “(B) Amount of remaining exclusion.— The trustee shall not be personally liable for any increase in the tax imposed by section 2601 which is attributable to the fact that— “(i) the amount, furnished by the Secretary to the trustee as being the amount of the exclusion for a transfer to a grandchild of the grantor of the trust which may reasonably be expected to remain with respect to the deemed transferor, is less than “(ii) the amount of such exclusion remaining with respect to such deemed transferor. “(3) Limitation on personal liability of distributee.— The distributee of the property shall be personally liable for the tax imposed by section 2601 only to the extent of an amount equal to the fair market value (determined as of the time of the distribution) of the property received by the distributee in the distribution. “(b) Lien.— The tax imposed by section 2601 on any transfer shall be a hen on the property transferred until the tax is paid in full or becomes unenforceable by reason of lapse of time. “Subchapter B— Definitions and Special Rules “Sec. 2611. Generation-skipping transfer. “Sec. 2612. Deemed transferor. “Sec. 2613. Other definitions. “Sec. 2614. Special rules. “SEC. 2611. GENERATION-SKIPPING TRANSFER. “(a) Generation-Skipping Transfer Defined.— For purposes of this chapter, the terms ‘gene ration-skipping transfer’ and ‘transfer’ mean any taxable distribution or taxable termination with respect to a generation-skipping trust or trust equivalent. “(b) Generation-Skipping Trust.— For purposes of this chapter, the term ‘generation-skipping trust’ means any trust having younger Post, p. 1884. generation beneficiaries (within the meaning of section 2613(c)(1)) who are assigned to more than one generation. “(c) Ascertainment of Generation.— For purposes of this chapter, the generation to which any person (other than the grantor) belongs shall be determined in accordance with the following rules: “(1) an individual who is a lineal descendent of a grandparent of the grantor shall be assigned to that generation which results from comparing the number of generations between the grandparent and such individual with the number of generations between the grandparent and the grantor, “(2) an individual who has been at any time married to a person described in paragraph (1) shall be assigned to the generation of the person so described and an individual who has been at any time married to the grantor shall be assigned to the grantor’s generation, “(3) a relationship by the half blood shall be treated as a relationship by the whole blood, “(4) a relationship by legal adoption shall be treated as a relationship by blood, “(5) an individual who is not assigned to a generation by reason of the foregoing paragraphs shall be assigned to a generation on the basis of the date of such individual’s birth, with— “(A) an individual born not more than 12(4 years after the date of the birth of the grantor assigned to the grantor’s generation, “(B) an individual born more than 12(4 years but not more than 37½ years after the date of the birth of the grantor assigned to the first generation younger than the grantor, and “(C) similar rules for a new generation every 25 years, “(6) an individual who, but for this paragraph, would be assigned to more than one generation shall be assigned to the youngest, such generation, and “(7) if any beneficiary of the trust is an estate or a trust, partnership, corporation, or other entity (other than an organization described in section 511(a)(2) and other than a charitable trust described in section 511(b)(2)), each individual having an indirect interest or power in the trust through such entity shall be treated as a beneficiary of the trust and shall be assigned to a generation under the foregoing provisions of this subsection. “(d) Generation-Skipping Trust Equivalent.— “(1) In general.— For purposes of this chapter, the term ‘generation-skipping trust equivalent’ means any arrangement which, although not a trust, has substantially the same effect as a generation-skipping trust. “(2) Examples of arrangements to which subsection relates.— Arrangements to be taken into account for purposes of determining whether or not paragraph (1) applies include (but are not limited to) arrangements involving life estates and remainders, estates for years, insurance and annuities, and split interests, “(3) References to trust include references to trust equivalents.— Any reference in this chapter in respect of a generation-skipping trust shall include the appropriate reference in respect of a generation-skipping trust equivalent. “SEC. 2612. DEEMED TRANSFEROR. “(a) General Rule.— For purposes of this chapter, the deemed transferor with respect to a transfer is— “(1) except as provided in paragraph (2), the parent of the transferee of the property who is more closely related to the grantor of the trust than the other parent of such transferee (or if neither parent is related to such grantor, the parent having a closer affinity to the grantor), or “(2) if the parent described in paragraph (1) is not a younger generation beneficiary of the trust, but 1 or more ancestors of the transferee is a younger generation beneficiary related by blood or adoption to the grantor of the trust, the youngest of such ancestors. “(b) Determination of Relationship.— For purposes of subsection (a), a parent related to the grantor of the trust by blood or adoption is more closely related than a parent related to such grantor by marriage. “SEC. 2613. OTHER DEFINITIONS. “(a) Taxable Distribution.— For purposes of this chapter— “(1) In general.— The term ‘taxable distribution’ means any distribution which is not out of the income of the trust (within the meaning of section 643(b)) from a generation-skipping trust to any younger generation beneficiary who is assigned to a generation younger than the general ion assignment of any other person who is a younger generation beneficiary. For purposes of the preceding sentence, an individual who at no time has had anything other than a future interest or future power (or both) in the trust shall not be considered as a younger generation beneficiary. “(2) Source of distribution.— If, during the taxable year of the trust, there are distributions out of the income of the trust (within the meaning of section 643(b)) and out of other amounts, for purposes of paragraph (1) the distributions of such income shall be deemed to have been made to the beneficiaries (to the extent of the aggregate distributions made to each such beneficiary during such year) in descending order of generations, beginning with the beneficiaries assigned to the oldest generation. “(3) Payment of tax.— If any portion of the tax imposed by this chapter with respect to any transfer is paid out of the income or corpus of the trust, an amount equal to the portion so paid shall be deemed to be a generation-skipping transfer. “(4) Certain distributions excluded from tax.— The term ‘taxable distribution’ does not include— “(A) any transfer to the extent such transfer is to a grandchild of the grantor of the trust, and does not exceed the limitation provided by subsection (b)(6), and “(B) any transfer to the extent such transfer is subject to tax imposed by chapter 11 or 12. “(b) Taxable Termination.— For purposes of this chapter— “(1) In general.— The term ‘taxable termination’ means the termination (by death, lapse of time, exercise or nonexercise, or otherwise) of the interest or power in a generation-skipping trust of any younger generation beneficiary who is assigned to any generation older than the generation assignment of any other person who is a younger generation beneficiary of that trust. Such term does not include a termination of the interest or power of any person who at no time has had anything other than a future interest or future power (or both) in the trust. “(2) Time certain terminations deemed to occur.— “(A) Where 2 or more beneficiaries are assigned to same generation.— In any case where 2 or more younger generation beneficiaries of a trust are assigned to the same generation, except to the extent provided in regulations prescribed by the Secretary, the transfer constituting the termination with respect to each such beneficiary shall be treated as occurring at the time when the last such termination occurs. “(B) Same beneficiary has more than i interest or power.— In any case where a younger generation beneficiary of a trust has both an interest and a power, or more than 1 interest or power, in the trust, except to the extent provided in regulations prescribed by the Secretary, the termination with respect to each such interest or power shall be treated as occurring at the time when the last such termination occurs. “(C) Unusual order of termination.— “(i) In general.— If— “(I) but for this subparagraph, there would have been a termination (determined after the application of subparagraphs (A) and (B)) of an interest or power of a younger generation beneficiary (hereinafter in this subparagraph referred to as the ‘younger beneficiary’), and “(II) at the time such termination would have occurred, a beneficiary (hereinafter in this subparagraph referred to as the ‘older beneficiary’) of the trust assigned to a higher generation than the generation of the younger beneficiary has a present interest or power in the trust, then, except to the extent provided in regulations prescribed by the Secretary, the transfer constituting the termination with respect to the younger beneficiary shall be treated as occurring at the time when the termination of the last present interest or power of the older beneficiary occurs. “(ii) Special rules.— If clause (i) applies with respect to any younger beneficiary— “(I) this chapter shall be applied first to the termination of the interest or power of the older beneficiary as if such termination occurred before the termination of the power or interest of the younger beneficiary; and “(II) the value of the property taken into account for purposes of determining the tax (if any) imposed by this chapter with respect to the termination of the interest or power of the younger beneficiary shall be reduced by the tax (if any) imposed by this chapter with respect to the termination of the interest or power of the older beneficiary. “(D) Special rule.— Subparagraphs (A) and (C) shall also apply where a person assigned to the same generation as, or a higher generation than, the person whose power or interest terminates has a present power or interest immediately after the termination and such power or interest arises as a result of such termination. “(3) Deemed transferees of certain terminations.— Where, at the time of any termination, it is not clear who will be the transferee of any portion of the property transferred, except to the extent provided in regulations prescribed by the Secretary, such portion shall be deemed transferred pro rata to all beneficiaries of the trust in accordance with the amount which each of them would receive under a maximum exercise of discretion on their behalf. For purposes of the preceding sentence, where it is not clear whether discretion will be exercised per stirpes or per capita, it shall be presumed that the discretion will be exercised per stirpes. “(4) Termination of power.— In the case of the termination of any power, the property transferred shall be deemed to be the property subject to the power immediately before the termination (determined without the application of paragraph (2)). “(5) Certain terminations excluded from tax.— The term ‘taxable termination’ does not include— “(A) any transfer to the extent such transfer is to a grandchild of the grantor of the trust and does not exceed the limitation provided by paragraph (6), and “(B) any transfer to the extent such transfer is subject to a tax imposed by chapter 11 or 12. “(6) $250,000 limit on exclusion of transfers to grand children.— In the case of any deemed transferor, the maximum amount excluded from the terms ‘taxable distribution’ and ‘taxable termination’ by reason of provisions exempting from such terms transfers to the grandchildren of the grantor of the trust shall be $250,000. The preceding sentence shall be applied to transfers from one or more trusts in the order in which such transfers are made or deemed made. “(7) Coordination with subsection (a).— “(A) Terminations take precedence over distributions.— If— “(i) the death of an individual or any other occurrence is a taxable termination with respect to any property, and “(ii) such occurrence also requires the distribution of part or all of such property in a distribution which would (but for this subparagraph) be a taxable distribution, then a taxable distribution shall be deemed not to have occurred with respect to the portion described in clause (i). “(B) Certain prior transfers.— To the extent that— “(i) the deemed transferor in any prior transfer of the property of the trust being transferred in this transfer was assigned to the same generation as (or a lower generation than) the generation assignment of the deemed transferor in this transfer, “(ii) the transferee in such prior transfer was assigned to the same generation as (or a higher generation than) the generation assignment of the transferee in this transfer, and “(iii) such transfers do not have the effect of avoiding tax under this chapter with respect to any transfer, the terms Taxable termination’ and ‘taxable distribution’ do not include this later transfer. “(c) Younger Generation Beneficiary; Beneficiary.— For purposes of this chapter— “(1) Younger generation beneficiary.— The term ‘younger generation beneficiary’ means any beneficiary who is assigned to a generation younger than the grantor’s generation. “(2) Time for ascertaining younger generation beneficiaries.— A person is a younger generation beneficiary of a trust with respect to any transfer only if such person was a younger generation beneficiary of the trust immediately before the transfer (or, in the case of a series of related transfers, only if such person was a younger generation beneficiary of the trust immediately before the first of such transfers). “(3) Beneficiary.— The term ‘beneficiary’ means any person who has a present or future interest or power in the trust, “(d) Interest or Power.— For purposes of this chapter— “(1) Interest.— A person has an interest in a trust if such person— “(A) has a right to receive income or corpus from the trust, or “(B) is a permissible recipient of such income or corpus. “(2) Power.— The term ‘power’ means any power to establish or alter beneficial enjoyment of the corpus or income of the trust. “(e) Limited Power To Appoint Among Lineal Descendants of Grantor Not Taken Into Account in Certain Cases.— For purposes of this chapter, if any individual does not have any present or future power in the trust other than a power to dispose of the corpus of the trust or the income therefrom to a beneficiary or a class of beneficiaries who are lineal descendants of the grantor assigned to a generation younger than the generation assignment of such individual, then such individual shall be treated as not having any power in the trust. “(f) Effect of Adoption.— For purposes of this chapter, a relationship by legal adoption shall be treated as a relationship by blood. “SEC. 2614. SPECIAL RULES. “(a) Basis Adjustment.— If property is transferred to any person pursuant to a generation-skipping transfer which occurs before the death of the deemed transferor, the basis of such property in the hands of the transferee shall be increased (but not above the fair market value of such property) by an amount equal to that portion of the tax imposed by section 2601 with respect to the transfer winch is attributable to the excess of the fair market value of such property over its adjusted basis immediately before the transfer. If property is transferred in a generation-skipping transfer subject to tax under this chapter which occurs at the same time as, or after, the death of the deemed transferor, the basis of such property shall be adjusted in a manner similar to the manner provided by section 1023 without Ante, p. 1872. regard to subsection (d) thereof (relating to basis of property passing from a decedent dying after December 31, 1976). “(b) Nonresidents Not Citizens of the United States.— If the deemed transferor of any transfer is, at the time of the transfer, a nonresident not a citizen of the United States and— “(1) if the deemed transferor is alive at the time of the transfer, there shall be taken into account only property which would be taken into account for purposes of chapter 12, or 26 USC 2501. “(2) if the deemed transferor has died at the same time as, or before, the transfer, there shall be taken into account only property which would be taken into account for purposes of chapter 11. 26 USC 2001. “(c) Disclaimers.— “For provisions relating to the effect of a qualified disclaimer for purposes of this chapter, see section 2518. “Subchapter C— Administration “Sec. 2621. Administration. “Sec. 2622. Regulations. “SEC. 2621. ADMINISTRATION. “(a) General Rule— Insofar as applicable and not inconsistent with the provisions of this chapter— “(1) if the deemed transferor is not alive at the time of the transfer, all provisions of subtitle F (including penalties) applicable to chapter 11 or section 2001 are hereby made applicable in Ante, p. 1846. respect of this chapter or section 2601, as the case may be, and “(2) if the deemed transferor is alive at the time of the transfer, all provisions of subtitle F (including penalties) applicable 26 USC 6001. to chapter 12 or section 2501 are hereby made applicable in respect of this chapter or section 2601, as the case may be. “(b) Sections 6166 and 6166A Not Applicable.— For purposes of this chapter, sections 6166 and 6166A (relating to extensions of time Ante, p. 1862. for payment of estate tax where estate consists largely of interest in closely held business) shall not apply. “(c) Return Requirements.— “(1) In General.— The Secretary shall prescribe by regulations the person who is required to make the return with respect to the tax imposed by this chapter and the time by which any such return must be filed. To the extent practicable, such regulations shall provide that— “(A) the person who is required to make such return shall be— “(i) in the case of a taxable distribution, the distributee, or “(ii) in the case of a taxable termination, the trustee; and “(B) the return shall be filed— “(i) in the case of a generation-skipping transfer occurring before the death of the deemed transferor, on or before the 90th day after the close of the taxable year of the trust in which such transfer occurred, or “(ii) in the case of a generation-skipping transfer occurring at the same time as, or after, the death of the deemed transferor, on or before the 90th day after the last day prescribed by law (including extensions) for filing the return of tax under chapter 11 with respect to the estate of the deemed transferor (or if later, the day which is 9 months after the day on which such generation-skip ping transfer occurred). “(2) Information returns.— The Secretary may by regulations require the trustee to furnish the Secretary with such information as he determines to be necessary for purposes of this chapter. “SEC. 2622. REGULATIONS. “The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter, including regulations providing the extent to which substantially separate and independent shares of different beneficiaries in the trust shall be treated as separate trusts.”

2. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 title XIV § 1431(a) · 100 Stat. 2085

   1. Amended · 26 U.S.C. § 2601

      Pub. L. 99–514 amended section generally

   2. Substituted · 26 U.S.C. § 2601

      Pub. L. 99–514 substituting “(within the meaning of subchapter B)” for “in the amount determined under section 2602”

   Source evidence

   Code amendment note
   Pub. L. 99–514 amended section generally, substituting “(within the meaning of subchapter B)” for “in the amount determined under section 2602”.

   Enacted provision · exact public law section
   (a) General Rule.— Chapter 13 (relating to tax on certain generation-skipping transfers) is amended to read as follows: “CHAPTER 13— TAX ON GENERATION-SKIPPING TRANSFERS “Subchapter A. Tax imposed, “Subchapter B. Generation-skipping transfers. “Subchapter C. Taxable amount. “Subchapter D. GST exemption. “Subchapter E. Applicable rate; inclusion ratio. “Subchapter F. Other definitions and special rules. “Subchapter G. Administration. “Subchapter A— Tax Imposed “Sec. 2601. Tax imposed. “Sec. 2602. Amount of tax. “Sec. 2603. Liability for tax. “Sec. 2604. Credit for certain State taxes. “SEC. 2601. TAX IMPOSED. “A tax is hereby imposed on every generation-skipping transfer (within the meaning of subchapter B). “SEC. 2602. AMOUNT OF TAX. “The amount of the tax imposed by section 2601 is— “(1) the taxable amount (determined under subchapter C), multiplied by “(2) the applicable rate (determined under subchapter E). “SEC. 2603. LIABILITY FOR TAX. “(a) Personal Liability.— “(1) Taxable distributions.— In the case of a taxable distribution, the tax imposed by section 2601 shall be paid by the transferee. “(2) Taxable termination.— In the case of a taxable termination or a direct skip from a trust, the tax shall be paid by the trustee. “(3) Direct skip.— In the case of a direct skip (other than a direct skip from a trust), the tax shall be paid by the transferor. “(b) Source of Tax.— Unless otherwise directed pursuant to the governing instrument by specific reference to the tax imposed by this chapter, the tax imposed by this chapter on a generation-skipping transfer shall be charged to the property constituting such transfer. “(c) Cross Reference.— “For provisions making estate and gift tax provisions with respect to transferee liability, liens, and related matters applicable to the tax imposed by section 2601, see section 2661. “SEC. 2604, CREDIT FOR CERTAIN STATE TAXES. “(a) General Rule.— If a generation-skipping transfer (other than a direct skip) occurs at the same time as and as a result of the death of an individual, a credit against the tax imposed by section 2601 shall be allowed in an amount equal to the generation-skipping transfer tax actually paid to any State in respect to any property included in the generation-skipping transfer. “(b) Limitation.— The aggregate amount allowed as a credit under this section with respect to any transfer shall not exceed 5 percent of the amount of the tax imposed by section 2601 on such transfer. “Subchapter B— Generation-Skipping Transfers “Sec. 2611. Generation-skipping transfer defined. “Sec. 2612. Taxable termination; taxable distribution; direct skip. “Sec. 2613. Skip person and non-skip person defined. “SEC. 2611. GENERATION-SKIPPING TRANSFER DEFINED. “(a) In General.— For purposes of this chapter, the term ‘generation-skipping transfers’ mean— “(1) a taxable distribution, “(2) a taxable termination, and “(3) a direct skip. “(b) Certain Transfers Excluded.— The term ‘generation-skipping transfer’ does not include— “(1) any transfer (other than a direct skip) from a trust, to the extent such transfer is subject to a tax imposed by chapter 11 or 12 with respect to a person in the 1st generation below that of the grantor, and “(2) any transfer which, if made inter vivos by an individual, would not be treated as a taxable gift by reason of section 2503(e) (relating to exclusion of certain transfers for educational or medical expenses), and “(3) any transfer to the extent— “(A) the property transferred was subject to a prior tax imposed under this chapter, “(B) the transferee in the prior transfer was assigned to the same generation as (or a lower generation than) the generation assignment of the transferee in this transfer, and “(C) such transfers do not have the effect of avoiding tax under this chapter with respect to any transfer. “SEC. 2612. TAXABLE TERMINATION; TAXABLE DISTRIBUTION; DIRECT SKIP. “(a) Taxable Termination.— “(1) General rule.— For purposes of this chapter, the term ‘taxable termination’ means the termination (by death, lapse of time, release of power, or otherwise) of an interest in property held in a trust unless— “(A) immediately after such termination, a non-skip person has an interest in such property, or “(B) at no time after such termination may a distribution (including distributions on termination) be made from such trust to a skip person. “(2) Certain partial terminations treated as taxable.— If, upon the termination of an interest in property held in a trust, a specified portion of the trust assets are distributed to skip persons who are lineal descendants of the holder of such interest (or to 1 or more trusts for the exclusive benefit of such persons), such termination shall constitute a taxable termination with respect to such portion of the trust property. “(b) Taxable Distribution.— For purposes of this chapter, the term ‘taxable distribution’ means any distribution from a trust to a skip person (other than a taxable termination or a direct skip). “(c) Direct Skip.— For purposes of this chapter— “(1) In general.— The term ‘direct skip’ means a transfer subject to a tax imposed by chapter 11 or 12 of an interest in property to a skip person. “(2) Special rule for transfers to grandchildren.— For purposes of determining whether any transfer is a direct skip, if— “(A) an individual is a grandchild of the transferor (or the transferor’s spouse or former spouse), and “(B) as of the time of the transfer, the parent of such individual who is a lineal descendant of the transferor (or the transferor’s spouse or former spouse) is dead, such individual shall be treated as if such individual were a child of the transferor and all of that grandchild’s children shall be treated as if they were grandchildren of the transferor. In the case of lineal descendants below a grandchild, the preceding sentence may be reapplied. “SEC. 2613. SKIP PERSON AND NON SKIP PERSON DEFINED. “(a) Skip Person.— For purposes of this chapter, the term ‘skip person’ means— “(1) a person assigned to a generation which is 2 or more generations below the generation assignment of the transferor, or “(2) a trust— “(A) if all interests in such trust are held by skip persons, or “(B) if— “(i) there is no person holding an interest in such trust, and “(ii) at no time after such transfer may a distribution (including distributions on termination) be made from such trust to a nonskip person. “(b) Non-Skip Person.— For purposes of this chapter, the term ‘non-skip person’ means any person who is not a skip person. “Subchapter C— Taxable Amount “Sec. 2621. Taxable amount in case of taxable distribution. “Sec. 2622. Taxable amount in case of taxable termination. “Sec. 2623. Taxable amount in case of direct skip. “Sec. 2624. Valuation. “SEC. 2621. TAXABLE AMOUNT IN CASE OF TAXABLE DISTRIBUTION. “(a) In General.— For purposes of this chapter, the taxable amount in the case of any taxable distribution shall be— “(1) the value of the property received by the transferee, reduced by “(2) any expense incurred by the transferee in connection with the determination, collection, or refund of the tax imposed by this chapter with respect to such distribution. “(b) Payment of GST Tax Treated as Taxable Distribution.— For purposes of this chapter, if any of the tax imposed by this chapter with respect to any taxable distribution is paid out of the trust, an amount equal to the portion so paid shall be treated as a taxable distribution. “SEC. 2622. TAXABLE AMOUNT IN CASE OF TAXABLE TERMINATION. “(a) In General.— For purposes of this chapter, the taxable amount in the case of a taxable termination shall be— “(1) the value of all property with respect to which the taxable termination has occurred, reduced by “(2) any deduction allowed under subsection (b). “(b) Deduction for Certain Expenses.— For purposes of subsection (a), there shall be allowed a deduction similar to the deduction allowed by section 2053 (relating to expenses, indebtedness, and taxes) for amounts attributable to the property with respect to which the taxable termination has occurred. “SEC. 2623. TAXABLE AMOUNT IN CASE OF DIRECT SKIP. “For purposes of this chapter, the taxable amount in the case of a direct skip shall be the value of the property received by the transferee. “SEC. 2624. VALUATION. “(a) General Rule.— Except as otherwise provided in this chapter, property shall be valued as of the time of the generation-skipping transfer. “(b) Alternate Valuation and Special Use Valuation Elections Apply To Certain Direct Skips.— In the case of any direct skip of property which is included in the transferor’s gross estate, the value of such property for purposes of this chapter shall be the same as its value for purposes of chapter 11 (determined with regard to sections 2032 and 2032A). “(c) Alternate Valuation Election Permitted in the Case of Taxable Terminations Occurring at Death.— If 1 or more taxable terminations with respect to the same trust occur at the same time as and as a result of the death of an individual, an election may be made to value all of the property included in such terminations in accordance with section 2032. “(d) Reduction for Consideration Provided by Transferee.— For purposes of this chapter, the value of the property transferred shall be reduced by the amount of any consideration provided by the transferee. “Subchapter D— GST Exemption “Sec. 2631. GST exemption. “Sec. 2632. Special rules for allocation of GST exemption. “SEC. 2631. GST EXEMPTION. “(a) General Rule.— For purposes of determining the inclusion ratio, every individual shall be allowed a GST exemption of $1,000,000 which may be allocated by such individual (or his executor) to any property with respect to which such individual is the transferor. “(b) Allocations Irrevocable.— Any allocation under subsection (a), once made, shall be irrevocable. “SEC. 2632. SPECIAL RULES FOR ALLOCATION OF GST EXEMPTION. “(a) Time and Manner of Allocation.— “(1) Time.— Any allocation by an individual of his GST exemption under section 2631(a) may be made at any time on or before the date prescribed for filing the estate tax return for such individual’s estate (determined with regard to extensions), regardless of whether such a return is required to be filed. “(2) Manner.— The Secretary shall prescribe by forms or regulations the manner in which any allocation referred to in paragraph (1) is to be made. “(b) Deemed Allocation to Certain Lifetime Direct Skips.— “(1) In general.— If any individual makes a direct skip during his lifetime, any unused portion of such individual’s GST exemption shall be allocated to the property transferred to the extent necessary to make the inclusion ratio for such property zero. If the amount of the direct skip exceeds such unused portion, the entire unused portion shall be allocated to the property transferred. “(2) Unused portion.— For purposes of paragraph (1), the unused portion of an individual’s GST exemption is that portion of such exemption which has not previously been allocated by such individual (or treated as allocated under paragraph (1)) with respect to a prior direct skip. “(3) Subsection not to apply in certain cases.— An individual may elect to have this subsection not apply to a transfer. “(c) Allocation of Unused GST Exemption.— “(1) In general.— Any portion of an individual’s GST exemption which has not been allocated within the time prescribed by subsection (a) shall be deemed to be allocated as follows— “(A) first, to property which is the subject of a direct skip occurring at such individual’s death, and “(B) second, to trusts with respect to which such individual is the transferor and from which a taxable distribution or a taxable termination might occur at or after such individual’s death. “(2) Allocation within categories.— “(A) In general.— The allocation under paragraph (1) shall be made among the properties described in subparagraph (A) thereof and the trusts described in subparagraph (B) thereof, as the case may be, in proportion to the respective amounts (at the time of allocation) of the nonexempt portions of such properties or trusts. “(B) Nonexempt portion.— For purposes of subparagraph (A), the term ‘nonexempt portion’ means the value (at the time of allocation) of the property or trust, multiplied by the inclusion ratio with respect to such property or trust. “Subchapter E— Applicable Rate; Inclusion Ratio “Sec. 2641. Applicable rate. “Sec. 2642. Inclusion ratio. “SEC. 2641. APPLICABLE RATE. “(a) General Rule.— For purposes of this chapter, the term ‘applicable rate’ means, with respect to any generation-skipping transfer, the product of— “(1) the maximum Federal estate tax rate, and “(2) the inclusion ratio with respect to the transfer. “(b) Maximum Federal Estate Tax Rate.— For purposes of subsection (a), the term ‘maximum Federal estate tax rate’ means the maximum rate imposed by section 2001 on the estates of decedents dying at the time of the taxable distribution, taxable termination, or direct skip, as the case may be. “SEC. 2642. INCLUSION RATIO. “(a) Inclusion Ratio Defined.— For purposes of this chapter— “(1) In general.— Except as otherwise provided in this section, the inclusion ratio with respect to any property transferred in a generation-skipping transfer shall be the excess (if any) of 1 over— “(A) except as provided in subparagraph (B), the applicable fraction determined for the trust from which suck transfer is made, or “(B) in the case of a direct skip, the applicable fraction determined for such skip. “(2) Applicable fraction.— For purposes of paragraph (1), the applicable fraction is a fraction— “(A) the numerator of which is the amount of the GST exemption allocated to the trust (or in the case of a direct skip, allocated to the property transferred in such skip), and “(B) the denominator of which is— “(i) the value of the property transferred to the trust (or involved in the direct skip), reduced by “(ii) the sum of— “(I) any Federal estate tax or State death tax actually recovered from the trust attributable to such property, and “(II) any charitable deduction allowed under section 2055 or 2522 with respect to such property. Except as provided in paragraphs (3) and (4) of subsection (b), the value determined under subparagraph (B)(i) shall be of the property as of the time of the transfer to the trust (or the direct skip). “(b) Valuation Rules, Etc.— “(1) Gifts for which gift tax return filed or deemed allocation made.— If the allocation of the GST exemption to any property is made on a timely filed gift tax return required by section 6019 or is deemed to be made under section 2632(b)(1)— “(A) the value of such property for purposes of subsection (a) shall be its value for purposes of chapter 12, and “(B) such allocation shall be effective on and after the date of such transfer. “(2) Transfers and allocations at or after death.— “(A) Transfers at death.— If property is transferred as a result of the death of the transferor, the value of such property for purposes of subsection (a) shall be its value for purposes of chapter 11. “(B) Allocations at or after death of transferor.— Any allocation at or after the death of the transferor shall be effective on and after the date of the death of the transferor. “(3) Inter vivos allocations not made on timely filed gift tax return.— If any allocation of the GST exemption to any property is made during the life of the transferor but is not made on a timely filed gift tax return required by section 6019 and is not deemed to be made under section 2632(b)(1)— “(A) the value of such property for purposes of subsection (a) shall be determined as of the time such allocation is filed with the Secretary, and “(B) such allocation shall be effective on and after the date on which such allocation is filed with the Secretary. “(4) QTIP trusts.— If the value of property is included in the estate of a spouse by virtue of section 2044, and if such spouse is treated as the transferor of such property under section 2652(a), the value of such property for purposes of subsection (a) shall be its value for purposes of chapter 11 in the estate of such spouse. “(c) Treatment of Certain Nontaxable Gifts.— “(1) Direct skips.— In the case of any direct skip which is a nontaxable gift, the inclusion ratio shall be zero. “(2) Treatment of nontaxable gifts made to trusts.— “(A) In general.— Except as provided in subparagraph (B), any nontaxable gift which is not a direct skip and which is made to a trust shall not be taken into account under subsection (a)(2)(B). “(B) Determination of 1st transfer to trust.— In the case of any nontaxable gift referred to in subparagraph (A) which is the 1st transfer to the trust, the inclusion ratio for such trust shall be zero. “(3) Nontaxable gift.— For purposes of this section, the term ‘nontaxable gift’ means any transfer of property to the extent such transfer is not treated as a taxable gift by reason of— “(A) section 2503(b) (taking into account the application of section 2513), or “(B) section 2503(e). “(d) Special Rules Where More Than 1 Transfer Made To Trust.— “(1) In general.— If a transfer of property (other than a nontaxable gift) is made to a trust in existence before such transfer, the applicable fraction for such trust shall be recomputed as of the time of such transfer in the manner provided in paragraph (2). “(2) Applicable fraction.— In the case of any such transfer, the recomputed applicable fraction is a fraction— “(A) the numerator of which is the sum of— “(i) the amount of the GST exemption allocated to property involved in such transfer, plus “(ii) the nontax portion of such trust immediately before such transfer, and “(B) the denominator of which is the sum of— “(i) the value of the property involved in such transfer, reduced by any charitable deduction allowed under section 2055 or 2522 with respect to such property, and “(ii) the value of all of the property in the trust (immediately before such transfer). “(3) Nontax portion.— For purposes of paragraph (2), the term ‘nontax portion’ means the product of— “(A) the value of all of the property in the trust, and “(B) the applicable fraction in effect for such trust. “(4) Similar recomputation in case of certain late allocations.— If— “(A) any allocation of the GST exemption to property transferred to a trust is not made on a timely filed gift tax return required by section 6019, and “(B) there was a previous allocation with respect to property transferred to such trust, the applicable fraction for such trust shall be recomputed as of the time of such allocation under rules similar to the rules of paragraph (2). “Subchapter F— Other Definitions and Special Rules “Sec. 2651. Generation assignment. “Sec. 2652. Other definitions, “Sec. 2653. Taxation of multiple skips. “Sec. 2654. Special rules. “SEC. 2651. GENERATION ASSIGNMENT. “(a) In General.— For purposes of this chapter, the generation to which any person (other than the transferor) belongs shall be determined in accordance with the rules set forth in this section. “(b) Lineal Descendants.— “(1) In general.— An individual who is a lineal descendant of a grandparent of the transferor shall be assigned to that generation which results from comparing the number of generations between the grandparent and such individual with the number of generations between the grandparent and the transferor. “(2) On spouse’s side.— An individual who is a lineal descendant of a grandparent of a spouse of the transferor (other than such spouse) shall be assigned to that generation which results from comparing the number of generations between such grandparent and such individual with the number of generations between such grandparent and such spouse. “(3) Treatment of legal adoptions, etc.— For purposes of this subsection— “(A) Legal adoptions.— A relationship by legal adoption shall be treated as a relationship by blood. “(B) Relationships by half-blood.— A relationship by the half-blood shall be treated as a relationship of the whole-blood. “(c) Marital Relationship.— “(1) Marriage to transferor.— An individual who has been married at any time to the transferor shall be assigned to the transferor’s generation. “(2) Marriage to other lineal descendants.— An individual who has been married at any time to an individual described in subsection (b) shall be assigned to the generation of the individual so described. “(d) Persons Who Are Not Lineal Descendants.— An individual who is not assigned to a generation by reason of the foregoing provisions of this section shall be assigned to a generation on the basis of the date of such individual’s birth with— “(1) an individual born not more than 12% years after the date of the birth of the transferor assigned to the transferor’s generation, “(2) an individual born more than 12% years but not more than 37% years after the date of the birth of the transferor assigned to the first generation younger than the transferor, and “(3) similar rules for a new generation every 25 years. “(e) Other Special Rules.— “(1) Individuals assigned to more than 1 generation.— Except as provided in regulations, an individual who, but for this subsection, would be assigned to more than 1 generation shall be assigned to the youngest such generation. “(2) Interests through entities.— Except as provided in paragraph (3), if an estate, trust, partnership, corporation, or other entity has an interest in property, each individual having a beneficial interest in such entity shall be treated as having an interest in such property and shall be assigned to a generation under the foregoing provisions of this subsection. “(3) Treatment of certain charitable organizations.— Any organization described in section 511(a)(2) and any charitable trust described in section 511(b)(2) shall be assigned to the transferor’s generation. “SEC. 2652. OTHER DEFINITIONS. “(a) Transferor.— For purposes of this chapter— “(1) In general.— Except as provided in this subsection or section 2653(a), the term ‘transferor’ means— “(A) in the case of a transfer of a kind subject to the tax imposed by chapter 11, the decedent, and “(B) in the case of a transfer of a kind subject to the tax imposed by chapter 12, the donor. “(2) Gift-splitting by married couples.— If, under section 2513, one-half of a gift is treated as made by an individual and one-half of such gift is treated as made by the spouse of such individual, such gift shall be so treated for purposes of this chapter. “(3) Special election for qualified terminable interest property.— In the case of— “(A) any property with respect to which a deduction is allowed to the decedent under section 2056 by reason of subsection (b)(7) thereof, and “(B) any property with respect to which a deduction to the donor spouse is allowed under section 2523 by reason of subsection (f) thereof, the estate of the decedent or the donor spouse, as the case may be, may elect to treat such property for purposes of this chapter as if the election to be treated as qualified terminable interest property had not been made. “(b) Trust and Trustee.— “(1) Trust.— The term ‘trust’ includes any arrangement (other than an estate) which, although not a trust, has substantially the same effect as a trust. “(2) Trustee.— In the case of an arrangement which is not a trust but which is treated as a trust under this subsection, the term ‘trustee’ shall mean the person in actual or constructive possession of the property subject to such arrangement. “(3) Examples.— Arrangements to which this subsection applies include arrangements involving life estates and remainders, estates for years, and insurance and annuity contracts. “(c) Interest.— “(1) In general.— A person has an interest in property held in trust if (at the time the determination is made) such person— “(A) has a right (other than a future right) to receive income or corpus from the trust, “(B) is a permissible current recipient of income or corpus from the trust and is not described in section 2055(a), or “(C) is described in section 2055(a) and the trust is— “(i) a charitable remainder annuity trust, “(ii) a charitable remainder unitrust within the meaning of section 664, or “(iii) a pooled income fund within the meaning of section 642(c)(5). “(2) Certain nominal interests disregarded.— For purposes of paragraph (1), an interest which is used primarily to postpone or avoid the tax imposed by this chapter shall be disregarded. “SEC. 2653. TAXATION OF MULTIPLE SKIPS. “(a) General Rule.— For purposes of this chapter, if— “(1) there is a generation-skipping transfer of any property, and “(2) immediately after such transfer such property is held in trust, for purposes of applying this chapter (other than section 2651) to subsequent transfers from the portion of such trust attributable to such property, the trust will be treated as if the transferor of such property were assigned to the first generation above the highest generation of any person who has an interest in such trust immediately after the transfer. “(b) Trust Retains Inclusion Ratio.— “(1) In general.— Except as provided in paragraph (2), the provisions of subsection (a) shall not affect the inclusion ratio determined with respect to any trust. Under regulations prescribed by the Secretary, notwithstanding the preceding sentence, proper adjustment shall be made to the inclusion ratio with respect to such trust to take into account any tax under this chapter borne by such trust which is imposed by this chapter on the transfer described in subsection (a). “(2) Special rule for pour-over trust.— “(A) In general.— If the generation-skipping transfer referred to in subsection (a) involves the transfer of property from 1 trust to another trust (hereinafter in this paragraph referred to as the ‘pour-over trust’), the inclusion ratio for the pour-over trust shall be determined by treating the nontax portion of such distribution as if it were a part of a GST exemption allocated to such trust. “(B) Nontax portion.— For purposes of subparagraph (A), the nontax portion of any distribution is the amount of such distribution multiplied by the applicable fraction which applies to such distribution. “SEC. 2654. SPECIAL RULES. “(a) Basis Adjustment.— “(1) In general.— Except as provided in paragraph (2), if property is transferred in a generation-skipping transfer, the basis of such property shall be increased (but not above the fair market value of such property) by an amount equal to that portion of the tax imposed by section 2601 (computed without regard to section 2604) with respect to the transfer which is attributable to the excess of the fair market value of such property over its adjusted basis immediately before the transfer. “(2) Certain transfers at death.— If property is transferred in a taxable termination which occurs at the same time as and as a result of the death of an individual, the basis of such property shall be adjusted in a manner similar to the manner provided under section 1014(a); except that, if the inclusion ratio with respect to such property is less than 1, any increase in basis shall be limited by multiplying such increase by the inclusion ratio. “(b) Separate Shares Treated as Separate Trusts.— Substantially separate and independent shares of different beneficiaries in a trust shall be treated as separate trusts. “(c) Disclaimers.— “For provisions relating to the effect of a qualified disclaimer for purposes of this chapter, see section 2518. “(d) Limitation on Personal Liability of Trustee.— A trustee shall not be personally liable for any increase in the tax imposed by section 2601 which is attributable to the fact that— “(1) section 2642(c) (relating to exemption of certain non-taxable gifts) does not apply to a transfer to the trust which was made during the life of the transferor and for which a gift tax return was not filed, or “(2) the inclusion ratio with respect to the trust is greater than the amount of such ratio as computed on the basis of the return on which was made (or was deemed made) an allocation of the GST exemption to property transferred to such trust. The preceding sentence shall not apply if the trustee has knowledge of facts sufficient reasonably to conclude that a gift tax return was required to be filed or that the inclusion ratio was erroneous. “Subchapter G— Administration “Sec. 2661. Administration. “Sec. 2662. Return requirements. “Sec. 2663. Regulations. “SEC. 2661. ADMINISTRATION. “Insofar as applicable and not inconsistent with the provisions of this chapter— “(1) except as provided in paragraph (2), all provisions of subtitle F (including penalties) applicable to the gift tax, to chapter 12, or to section 2501, are hereby made applicable in respect of the generation-skipping transfer tax, this chapter, or section 2601, as the case may be, and “(2) in the case of a generation-skipping transfer occurring at the same time as and as a result of the death of an individual, all provisions of subtitle F (including penalties) applicable to the estate tax, to chapter 11, or to section 2001 are hereby made applicable in respect of the generation-skipping transfer tax, this chapter, or section 2601 (as the case may be). “SEC. 2662. RETURN REQUIREMENTS. “(a) In General.— The Secretary shall prescribe by regulations the person who is required to make the return with respect to the tax imposed by this chapter and the time by which any such return must be filed. To the extent practicable, such regulations shall provide that— “(1) the person who is required to make such return shall be the person liable under section 2603(a) for payment of such tax, and “(2) the return shall be filed— “(A) in the case of a direct skip (other than from a trust), on or before the date on which an estate or gift tax return is required to be filed with respect to the transfer, and “(B) in all other cases, on or before the 15th day of the 4th month after the close of the taxable year of the person required to make such return in which such transfer occurs. “(b) Information Returns.— The Secretary may by regulations require a return to be filed containing such information as he determines to be necessary for purposes of this chapter. “SEC. 2663. REGULATIONS. “The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter, including— “(1) such regulations as may be necessary to coordinate the provisions of this chapter with the recapture tax imposed under section 2032A(c), and “(2) regulations (consistent with the principles of chapters 11 and 12) providing for the application of this chapter in the case of transferors who are nonresidents not citizens of the United States.”

   Effective date note
   Pub. L. 99–514, title XIV, § 1433, Oct. 22, 1986, 100 Stat. 2731, as amended by Pub. L. 100–647, title I, § 1014(h)(1)–(3)(A), (4), Nov. 10, 1988, 102 Stat. 3567, 3568, provided that: [Pub. L. 101–508, title XI, § 11703(c)(3), Nov. 5, 1990, 104 Stat. 1388–517, provided that: “Subparagraph (C) of section 1433(b)(2) of the Tax Reform Act of 1986 [Pub. L. 99–514, set out above] shall not exempt any generation-skipping transfer from the amendments made by subtitle D of title XVI of such Act [probably means subtitle D (§§ 1431–1433) of title XIV of Pub. L. 99–514, amending chapter 13 of this title, enacting section 2515 of this title, and amending sections 164, 303, 691, 2013, 2032, and 6166 of this title] to the extent such transfer is attributable to property transferred by gift or by reason of the death of another person to the decedent (or trust) referred to in such subparagraph after August 3, 1990.” ] [Pub. L. 100–647, title I, § 1014(h)(3)(B), Nov. 10, 1988, 102 Stat. 3568, provided that: “Clause (iii) of section 1443(b)(3)(B) [1433(b)(3)(B)] of the Reform Act [Pub. L. 99–514, set out above] (as amended by subparagraph (A)) shall apply only to transfers after June 10, 1987.” ] [Pub. L. 100–647, title I, § 1014(h)(5), Nov. 10, 1988, 102 Stat. 3568, provided that: “Subparagraph (C) of section 1433(b)(2) of the Reform Act [Pub. L. 99–514, set out above] shall not exempt any direct skip from the amendments made by subtitle D of title XIV of the Reform Act [Pub. L. 99–514, amending chapter 13 of this title, enacting section 2515 of this title, and amending sections 164, 303, 691, 2013, 2032, and 6166 of this title] if—[“(A) such direct skip results from the application of section 2044 of the 1986 Code, and[“(B) such direct skip is attributable to property transferred to the trust after October 21, 1988.” ]

3 of 3 references resolved to an enrolled provision