§2652 — Title 26 Internal Revenue Code | U.S. Code

Summary

For the generation-skipping transfer tax, the "transferor" is the person whose transfer triggers the tax: the deceased person when property passes through an estate, or the donor when property passes as a gift. When spouses elect to split a gift, each spouse is treated as the transferor of half. Special rules also cover certain marital trusts that qualified for the estate or gift tax deduction. The tax reads "trust" broadly. Any arrangement that works substantially like a trust counts, including life estates, estates for years, and insurance and annuity contracts, and whoever holds the property is treated as the trustee. A person has an "interest" in a trust if they have a current right to receive income or principal, or are a permitted current recipient. Interests used mainly to postpone or avoid the tax are ignored, and a trust's mere ability to cover child-support-type obligations under state law is disregarded if that use is discretionary.

Title 26, §2652

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(a)For purposes of this chapter—

(1)Except as provided in this subsection or section 2653(a), the term “transferor” means—

(A)in the case of any property subject to the tax imposed by chapter 11, the decedent, and

(B)in the case of any property subject to the tax imposed by chapter 12, the donor.

(2)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)In the case of—

(A)any trust with respect to which a deduction is allowed to the decedent under section 2056 by reason of subsection (b)(7) thereof, and

(B)any trust with respect to which a deduction to the donor spouse is allowed under section 2523 by reason of subsection (f) thereof,

(b)(1)The term “trust” includes any arrangement (other than an estate) which, although not a trust, has substantially the same effect as a trust.

(2)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)Arrangements to which this subsection applies include arrangements involving life estates and remainders, estates for years, and insurance and annuity contracts.

(c)(1)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)For purposes of paragraph (1), an interest which is used primarily to postpone or avoid any tax imposed by this chapter shall be disregarded.

(3)The fact that income or corpus of the trust may be used to satisfy an obligation of support arising under State law shall be disregarded 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.

(d)For purposes of this chapter, the term “executor” has the meaning given such term by section 2203.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1998—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.” Pub. L. 105–206, § 6013(a)(3), substituted “section 645” for “section 646”. 1997—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.” 1988—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.” 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. 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. Subsec. (c)(3). Pub. L. 100–647, § 1014(g)(6), added par. (3). Subsec. (d). Pub. L. 100–647, § 1014(g)(20), added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 AmendmentAmendment 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.

Effective Date

of 1997 AmendmentAmendment by Pub. L. 105–34 applicable with respect to estates of decedents dying after Aug. 5, 1997, see section 1305(d) of Pub. L. 105–34, set out as an

Effective Date

note under section 645 of this title.

Effective Date

of 1988 AmendmentAmendment 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.

§2652 Other Definitions

Summary

Title 26, §2652

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

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