26 USC 2651 - Generation assignment

View all text of Subchapter F [§ 2651 - § 2654]

§ 2651. Generation assignment

(a) In general

(b) Lineal descendants

(1) In general

(2) On spouse’s side

(3) Treatment of legal adoptions, etc.

For purposes of this subsection—

(A) Legal adoptions

(B) Relationships by half-blood

(1) Marriage to transferor

(2) Marriage to other lineal descendants

(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—

(1) an individual born not more than 12½ years after the date of the birth of the transferor assigned to the transferor’s generation,

(2) an individual born more than 12½ years but not more than 37½ years after the date of the birth of the transferor assigned to the first generation younger than the transferor, and

(3) similar rules for a new generation every 25 years.

(e) Special rule for persons with a deceased parent

(1) In general

For purposes of determining whether any transfer is a generation-skipping transfer, if—

(A) an individual is a descendant of a parent of the transferor (or the transferor’s spouse or former spouse), and

(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.

(2) Limited application of subsection to collateral heirs

(f) Other special rules

(1) Individuals assigned to more than 1 generation

(2) Interests through entities

(3) Treatment of certain charitable organizations and governmental entities

Any—

(A) organization described in section 511(a)(2),

(B) charitable trust described in section 511(b)(2), and

shall be assigned to the transferor’s generation.

(Added Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2725; amended Pub. L. 100–647, title I, § 1014(g)(11), (19), Nov. 10, 1988, 102 Stat. 3565, 3567; Pub. L. 105–34, title V, § 511(a), Aug. 5, 1997, 111 Stat. 860.)