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Title 26 — Internal Revenue CodeRelease 119-73not60

§2653 Taxation of Multiple Skips

Title 26 › Subtitle Subtitle B— Estate and Gift Taxes › Chapter 13— TAX ON GENERATION-SKIPPING TRANSFERS › Subchapter F— Other Definitions and Special Rules › § 2653

Last updated Apr 5, 2026|Official source

Summary

Change a trust’s inclusion ratio when property is moved in a generation-skipping transfer and ends up in a trust right away. Usually the transfer won’t by itself change the trust’s inclusion ratio. Still, Treasury must make rules so the ratio is adjusted to reflect any tax the trust pays because of that transfer. If the property moves from one trust to another (a “pour-over trust”), treat the untaxed part of that distribution as if it were part of a GST exemption for the pour-over trust. The untaxed part equals the distribution times the applicable fraction.

Full Legal Text

Title 26, §2653

Internal Revenue Code — Source: USLM XML via OLRC

(a)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,
(b)(1)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)(A)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)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.

Legislative History

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.

Reference

Citations & Metadata

Citation

26 U.S.C. § 2653

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60