§ 2652. Other definitions

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. 1986

   Tax Reform Act of 1986

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

   Enacted · 26 U.S.C. § 2652

   Added Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2726

   Source evidence

   Code source credit
   Added Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2726

   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.”

2. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1014(g)(9) · 102 Stat. 3342

   1. Substituted · 26 U.S.C. § 2652(a)(1)

      Pub. L. 100–647, § 1014(g)(9), substituted “any property” for “a transfer of a kind” in subpars. (A) and (B)

   2. Inserted · 26 U.S.C. § 2652(a)(1)

      Pub. L. 100–647, § 1014(g)(9), inserted at end “An individual shall be treated as transferring any property with respect to which such individual is the transferor.”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 100–647, § 1014(g)(9), substituted “any property” for “a transfer of a kind” in subpars. (A) and (B) and inserted at end “An individual shall be treated as transferring any property with respect to which such individual is the transferor.”

   Enacted provision · exact public law section
   (9) Paragraph (1) of section 2652(a) of the 1986 Code is amended— (A) by striking out “a transfer of a kind” each place it appears and inserting in lieu thereof “any property”, and (B) by adding at the end thereof the following new sentence: “An individual shall be treated as transferring any property with respect to which such individual is the transferor.”

3. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1014(g)(14) · 102 Stat. 3342

   1. Substituted · 26 U.S.C. § 2652(a)(3)

      Pub. L. 100–647, § 1014(g)(14), substituted “any trust” for “any property” in closing provisions

   2. Substituted · 26 U.S.C. § 2652(a)(3)

      Pub. L. 100–647, § 1014(g)(14), substituted “may elect to treat all of the property in such trust” for “may elect to treat such property” in closing provisions

   Source evidence

   Code amendment note
   Subsec. (a)(3). Pub. L. 100–647, § 1014(g)(14), substituted “any trust” for “any property” in subpars. (A) and (B) and “may elect to treat all of the property in such trust” for “may elect to treat such property” in closing provisions.

   Enacted provision · exact public law section
   (14) Paragraph (3) of section 2652(a) of the 1986 Code is amended— (A) by striking out “any property” in subparagraphs (A) and (B) and inserting in lieu thereof “any trust”, and (B) by striking out “may elect to treat such property” and inserting in lieu thereof “may elect to treat all of the property in such trust”.

4. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1014(g)(8) · 102 Stat. 3342

   1. Struck · 26 U.S.C. § 2652(c)(2)

      Pub. L. 100–647, § 1014(g)(8), struck out “nominal” before “interests” in heading

   2. Substituted · 26 U.S.C. § 2652(c)(2)

      Pub. L. 100–647, § 1014(g)(8), substituted “any tax” for “the tax” in text

   Source evidence

   Code amendment note
   Subsec. (c)(2). Pub. L. 100–647, § 1014(g)(8), struck out “nominal” before “interests” in heading and substituted “any tax” for “the tax” in text.

   Enacted provision · exact public law section
   (8) Paragraph (2) of section 2652(c) of the 1986 Code is amended— (A) by striking out “nominal interests” in the paragraph heading and inserting In lieu thereof “interests”, and (B) by striking out “the tax” and inserting in lieu thereof “any tax”.

5. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1014(g)(6) · 102 Stat. 3342

   Added · 26 U.S.C. § 2652(c)(3)

   Pub. L. 100–647, § 1014(g)(6), added par. (3)

   Source evidence

   Code amendment note
   Subsec. (c)(3). Pub. L. 100–647, § 1014(g)(6), added par. (3).

   Enacted provision · exact public law section
   (6) Subsection (c) of section 2652 of the 1986 Code is amended by adding at the end thereof the following new paragraph: “(3) Certain support obligations disregarded.— The fact that income or corpus of the trust may be used to satisfy an obligation of support arising under State law shall be dis-regarded in determining whether a person has an interest in the trust, if— “(A) such use is discretionary, or “(B) such use is pursuant to the provisions of any State law substantially equivalent to the Uniform Gifts to Minors Act

6. 1988

   Technical and Miscellaneous Revenue Act of 1988

   Pub. L. 100–647 § 1014(g)(20) · 102 Stat. 3342

   Added · 26 U.S.C. § 2652(d)

   Pub. L. 100–647, § 1014(g)(20), added subsec. (d)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 100–647, § 1014(g)(20), added subsec. (d).

   Enacted provision · exact public law section
   (20) Section 2652 of the 1986 Code is amended by adding at the end thereof the following new subsection: “(d) Executor.— For purposes of this chapter, the term ‘executor’ has the meaning given such term by section 2203.”

7. 1997

   Pub. L. 105–34 title XIII § 1305(b) · 111 Stat. 788

   Inserted · 26 U.S.C. § 2652(b)(1)

   Pub. L. 105–34 inserted at end “Such term shall not include any trust during any period the trust is treated as part of an estate under section 646.”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 105–34 inserted at end “Such term shall not include any trust during any period the trust is treated as part of an estate under section 646.”

   Enacted provision · exact public law section
   (b) Comparable Treatment Under Generation-Skipping Tax.— Paragraph (1) of section 2652(b) is amended by adding at the end the following new sentence: “Such term shall not include any trust during any period the trust is treated as part of an estate under section 646.”.

   Effective date note
   Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

8. 1998

   Internal Revenue Service Restructuring and Reform Act of 1998

   Pub. L. 105–206 § 6013(a)(4)(A) · 112 Stat. 685

   Struck · 26 U.S.C. § 2652(b)(1)

   Pub. L. 105–206, § 6013(a)(4)(A), struck out at end “Such term shall not include any trust during any period the trust is treated as part of an estate under section 645.”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 105–206, § 6013(a)(4)(A), struck out at end “Such term shall not include any trust during any period the trust is treated as part of an estate under section 645.”

   Enacted provision · exact public law section
   (A) Paragraph (1) of section 2652(b) of the 1986 Code is amended by striking the second sentence.

   Effective date note
   Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

9. 1998

   Internal Revenue Service Restructuring and Reform Act of 1998

   Pub. L. 105–206 § 6013(a)(3) · 112 Stat. 685

   Substituted · 26 U.S.C. § 2652(b)(1)

   Pub. L. 105–206, § 6013(a)(3), substituted “section 645” for “section 646”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 105–206, § 6013(a)(3), substituted “section 645” for “section 646”.

   Enacted provision · exact public law section
   (3) Paragraph (1) of section 2652(b) of the 1986 Code is amended by striking “section 646” and inserting “section 645”.

   Effective date note
   Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

12 of 12 references resolved to an enrolled provision