I.R.C. § 2611(a) In General —
For purposes of this chapter, the term “generation-skipping transfer” means—
I.R.C. § 2611(a)(1) —
a taxable distribution,
I.R.C. § 2611(a)(2) —
a taxable termination, and
I.R.C. § 2611(a)(3) —
a direct skip.
I.R.C. § 2611(b) Certain Transfers Excluded —
The term “generation-skipping transfer” does not include—
I.R.C. § 2611(b)(1) —
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
I.R.C. § 2611(b)(2) —
any transfer to the extent—
I.R.C. § 2611(b)(2)(A) —
the property transferred was subject to a prior tax imposed under this chapter,
I.R.C. § 2611(b)(2)(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
I.R.C. § 2611(b)(2)(C) —
such transfers do not have the effect of avoiding tax under this chapter with respect
to any transfer.
(Added by Pub. L. 94-455, title XX, 2006(a), Oct. 4, 1976, 90 Stat. 1882, and amended Pub. L. 99-514, title XIV, 1431(a), Oct. 22, 1986, 100 Stat. 2718; Pub. L. 100-647, title I, 1014(g)(1), (2), 1018(u)(43), Nov. 10, 1988, 102 Stat. 3562, 3592.)
BACKGROUND NOTES
Amendments to Subchapter
1986--Pub. L. 99-514, title XIV, 1431(a), Oct. 22, 1986, 100 Stat. 2718, substituted “Generation-Skipping
Transfers"
for “Definitions and Special Rules” in subchapter heading, substituted
“Generation-skipping transfer defined” for “Generation-skipping transfer"
in item 2611, “Taxable termination; taxable distribution; direct skip"
for “Deemed transferor” in item 2612, and “Skip person and non-skip person defined”
for “Other definitions” in item 2613, and struck out item 2614 “Special rules”.
AMENDMENTS
1988--Subsec. (a). Pub. L. 100-647, 1014(g)(1), 1018(u)(43), substituted “generation-skipping transfer” for “generation-skipping
transfers” and “means” for “mean”.
Subsec. (b). Pub. L. 100-647, 1014(g)(2), redesignated pars. (2) and
(3) as (1) and (2), respectively, and struck out former par. (1) which read as follows:
“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”.
1986--Pub. L. 99-514 amended section generally, substituting provisions defining “generation-skipping
transfers” and what that term does not include, for former provisions which defined
“generation-skipping transfer”, “transfer”, and “generation-skipping trust”, contained
provisions to be used in determining the ascertainment of generation, and provided
for a generation-skipping trust equivalent.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax
Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Section applicable to generation-skipping transfers
(within the meaning of section 2611 of this title) made after Oct. 22, 1986, except
as otherwise provided, see section 1433 of Pub. L. 99-514, set out as a note under section 2601 of this title.
REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER BASIS
Section 301 of Pub. L. 111-312 provided:
“(a)
IN GENERAL.—Each provision of law amended by subtitle A or E of title V of the Economic
Growth and Tax Relief Reconciliation Act of 2001 is amended to read as such provision
would read if such subtitle had never been enacted.
“(b)
CONFORMING AMENDMENT.—On and after January 1, 2011, paragraph
(1) of section 2505(a) of the Internal Revenue Code of 1986 is amended to read as such paragraph would read if section 521(b)(2) of the
Economic Growth and Tax Relief Reconciliation Act of 2001 had never been enacted.
“(c)
SPECIAL ELECTION WITH RESPECT TO ESTATES OF DECEDENTS DYING IN 2010.—Notwithstanding
subsection (a), in the case of an estate of a decedent dying after December 31, 2009,
and before January 1, 2011, the executor (within the meaning of section 2203 of the Internal Revenue Code of 1986) may elect to apply such Code as though the amendments made by subsection
(a) do not apply with respect to chapter 11 of such Code and with respect to property
acquired or passing from such decedent (within the meaning of section 1014(b) of such
Code). Such election shall be made at such time and in such manner as the Secretary
of the Treasury or the Secretary's delegate shall provide. Such an election once made
shall be revocable only with the consent of the Secretary of the Treasury or the Secretary's
delegate. For purposes of section 2652(a)(1) of such Code, the determination of whether
any property is subject to the tax imposed by such chapter 11 shall be made without
regard to any election made under this subsection.
“(d)
EXTENSION OF TIME FOR PERFORMING CERTAIN ACTS.—
“
(1) ESTATE TAX.—In the case of the estate of a decedent dying after December 31, 2009,
and before the date of the enactment of this Act, the due date for—
“(A)
filing any return under section 6018 of the Internal Revenue Codeof 1986 (including any election required to be made on such a return) as such section
is in effect after the date of the enactment of this Act without regard to any election
under subsection (c),
“(B)
making any payment of tax under chapter 11 of such Code, and
“(C)
making any disclaimer described in section 2518(b) of such Code of an interest in
property passing by reason of the death of such decedent, shall not be earlier than
the date which is 9 months after the date of the enactment of this Act.
“(2)
GENERATION-SKIPPING TAX.—In the case of any generation-skipping transfer made after
December 31, 2009, and before the date of the enactment of this Act, the due date
for filing any return under section 2662 of the Internal Revenue Code of 1986 (including any election required to be made on such a return)
shall not be earlier than the date which is 9 months after the date of the enactment
of this Act.
“(e)
EFFECTIVE DATE.—Except as otherwise provided in this section, the amendments made
by this section shall apply to estates of decedents dying, and transfers made, after
December 31, 2009.”
TERMINATION
Section 501(b) (Generation-Skipping Transfer Tax Repeal) of Pub. L. 107-16 added Code Sec. 2664, which states that chapter 13 of subtitle B shall not apply
to generation-skipping transfers after December 31, 2009.
Note, however, that Section 901 (Sunset of Provisions of Act) of Pub. L. 107-16, as amended by Pub. L. 107-358 and Pub. L. 111-312, and struck by Pub. L. 112-240, Sec. 101(a)(1) (effective for taxable, plan, or limitation years beginning after Dec. 31, 2012,
and estates of decedents dying, gifts made, or generation skipping transfers after
Dec. 31, 2012), provided that:
“(a)
IN GENERAL.--All provisions of, and amendments made by, this Act shall not apply--
“(1) to taxable, plan, or limitation years beginning after December 31, 2012, or
“(2) in the case of title V, to estates of decedents dying, gifts made, or generation
skipping transfers, after December 31, 2012.
“(b)
APPLICATION OF CERTAIN LAWS.--The Internal Revenue Code of 1986 and the Employee Retirement
Income Security Act of 1974 shall be applied and administered to years, estates, gifts,
and transfers described in subsection (a) as if the provisions and amendments described
in subsection (a) had never been enacted.
“(c)
EXCEPTION.-Subsection (a) shall not apply to section 803 (relating to no federal income
tax on restitution received by victims of the Nazi regime or their heirs or estates).”
