26 U.S.C. § 2641: Applicable rate

Summary

Defines the "applicable rate" for a generation-skipping transfer as the highest federal estate tax rate in effect at the time multiplied by the transfer's inclusion ratio. It also says the "maximum Federal estate tax rate" means the top estate tax rate listed under section 2001 for the estate of the person who died when the taxable distribution, taxable termination, or direct skip happens.

Title 26, §2641

Internal Revenue Code, Source: USLM XML via OLRC

(a)General rule

For purposes of this chapter, the term “applicable rate” means, with respect to any generation-skipping transfer, the product of— (1)

(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.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

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. Modification of Generation-Skipping Transfer Tax Pub. L. 111–312, title III, § 302(c), Dec. 17, 2010, 124 Stat. 3302, provided that: “In the case of any generation-skipping transfer made after

December 31, 2009, and before

January 1, 2011, the applicable rate determined under section 2641(a) of the Internal Revenue Code of 1986 shall be zero.”

§2641 Applicable Rate

Summary

Title 26, §2641

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata