
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2611]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
            CHAPTER 13--TAX ON GENERATION-SKIPPING TRANSFERS
 
               Subchapter B--Generation-Skipping Transfers
 
Sec. 2611. Generation-skipping transfer defined


(a) In general

    For purposes of this chapter, the term ``generation-skipping 
transfer'' means--
        (1) a taxable distribution,
        (2) a taxable termination, and
        (3) a direct skip.

(b) Certain transfers excluded

    The term ``generation-skipping transfer'' does not include--
        (1) any transfer which, if made inter vivos by an individual, 
    would not be treated as a taxable gift by reason of section 2503(e) 
    (relating to exclusion of certain transfers for educational or 
    medical expenses), and
        (2) any transfer to the extent--
            (A) the property transferred was subject to a prior tax 
        imposed under this chapter,
            (B) the transferee in the prior transfer was assigned to the 
        same generation as (or a lower generation than) the generation 
        assignment of the transferee in this transfer, and
            (C) such transfers do not have the effect of avoiding tax 
        under this chapter with respect to any transfer.

(Added Pub. L. 94-455, title XX, Sec. 2006(a), Oct. 4, 1976, 90 Stat. 
1882; amended Pub. L. 99-514, title XIV, Sec. 1431(a), Oct. 22, 1986, 
100 Stat. 2718; Pub. L. 100-647, title I, Secs. 1014(g)(1), (2), 
1018(u)(43), Nov. 10, 1988, 102 Stat. 3562, 3592.)


                               Amendments

    1988--Subsec. (a). Pub. L. 100-647, Secs. 1014(g)(1), 1018(u)(43), 
substituted ``generation-skipping transfer'' for ``generation-skipping 
transfers'' and ``means'' for ``mean''.
    Subsec. (b). Pub. L. 100-647, Sec. 1014(g)(2), redesignated pars. 
(2) and (3) as (1) and (2), respectively, and struck out former par. (1) 
which read as follows: ``any transfer (other than a direct skip) from a 
trust, to the extent such transfer is subject to a tax imposed by 
chapter 11 or 12 with respect to a person in the 1st generation below 
that of the grantor, and''.
    1986--Pub. L. 99-514 amended section generally, substituting 
provisions defining ``generation-skipping transfers'' and what that term 
does not include, for former provisions which defined ``generation-
skipping transfer'', ``transfer'', and ``generation-skipping trust'', 
contained provisions to be used in determining the ascertainment of 
generation, and provided for a generation-skipping trust equivalent.


                    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 of 1986 Amendment

    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.

                  Section Referred to in Other Sections

    This section is referred to in section 303 of this title.
