I.R.C. § 2651(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.
I.R.C. § 2651(b) Lineal Descendants
I.R.C. § 2651(b)(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.
I.R.C. § 2651(b)(2) On Spouse's Side —
An individual who is a lineal descendant of a grandparent of a spouse (or former
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.
I.R.C. § 2651(b)(3) Treatment Of Legal Adoptions, Etc. —
For purposes of this subsection—
I.R.C. § 2651(b)(3)(A) Legal Adoptions —
A relationship by legal adoption shall be treated as a relationship by blood.
I.R.C. § 2651(b)(3)(B) Relationships By Half-Blood —
A relationship by the half-blood shall be treated as a relationship of the whole-blood.
I.R.C. § 2651(c) Marital Relationship
I.R.C. § 2651(c)(1) Marriage To Transferor —
An individual who has been married at any time to the transferor shall be assigned
to the transferor's generation.
I.R.C. § 2651(c)(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.
I.R.C. § 2651(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—
I.R.C. § 2651(d)(1) —
an individual born not more than 121/2 years after the date of the birth of the transferor
assigned to the transferor's generation,
I.R.C. § 2651(d)(2) —
an individual born more than 121/2 years but not more than 371/2 years after the
date of the birth of the transferor assigned
to the first generation younger than the transferor, and
I.R.C. § 2651(d)(3) —
similar rules for a new generation every 25 years.
I.R.C. § 2651(e) Special Rule For Persons With A Deceased Parent
I.R.C. § 2651(e)(1) In General —
For purposes of determining whether any transfer is a generation-skipping transfer,
if—
I.R.C. § 2651(e)(1)(A) —
an individual is a descendant of a parent of the transferor (or the transferor's
spouse or former spouse), and
I.R.C. § 2651(e)(1)(B) —
such individual's parent who is a lineal descendant of the parent of the transferor
(or the transferor's spouse or former spouse) is dead at the time the transfer (from
which an interest of such individual is established or derived) is subject to a tax
imposed by chapter 11 or 12 upon the transferor (and if there shall be more than
1 such time, then at the earliest such time),
such individual shall be treated as if such individual
were a member of the generation which is 1 generation below the lower of the transferor's
generation or the generation assignment of the youngest living ancestor of such individual
who is also a descendant of the parent of the transferor (or the transferor's spouse
or former spouse), and the generation assignment of any descendant of such individual
shall be adjusted accordingly.
I.R.C. § 2651(e)(2) Limited Application Of Subsection To Collateral Heirs —
This subsection shall not apply with respect to a transfer to any individual who
is not a lineal descendant of the transferor
(or the transferor's spouse or former spouse) if, at the time of the transfer, such
transferor has any living lineal descendant.
I.R.C. § 2651(f) Other Special Rules
I.R.C. § 2651(f)(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.
I.R.C. § 2651(f)(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.
I.R.C. § 2651(f)(3) Treatment Of Certain Charitable Organizations And Governmental Entities —
Any—
I.R.C. § 2651(f)(3)(A) —
organization described in section 511(a)(2),
I.R.C. § 2651(f)(3)(B) —
charitable trust described in section 511(b)(2), and
I.R.C. § 2651(f)(3)(C) —
governmental entity,
shall be assigned to the transferor's generation.
(Added by Pub. L. 99-514, title XIV, 1431(a), Oct. 22, 1986, 100 Stat. 2725, and amended Pub. L. 100-647, title I, 1014(g)(11),
(19), Nov. 10, 1988, 102 Stat. 3565, 3567; Pub. L. 105-34, title V, Sec. 511(a), Aug. 5, 1997, 111 Stat 788.)
BACKGROUND NOTES
AMENDMENTS
1997--Subsec. (e). Pub. L. 105-34, Sec. 511(a), redesignated subsec. (e) as subsec. (f) and added a new subsec. (e).
1988--Subsec. (b)(2). Pub. L. 100-647, 1014(g)(19), inserted
“(or former spouse)” after “a spouse”.
Subsec. (e)(3). Pub. L. 100-647, 1014(g)(11), amended par. (3) generally, including governmental entities among the
organizations to be assigned to transferor's generation.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendments by Sec. 511(a) of Pub. L. 105-34 applicable to terminations, distributions, and transfers occurring after December
31, 1997.
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
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).”
