Sec. 26.2600-1 Table of contents.
SECTION 26.2601-1 EFFECTIVE DATES.
(a) Transfers subject to the generation-skipping transfer tax.
(1) In general.
(2) Certain transfers treated as if made after October 22, 1986.
(3) Certain trust events treated as if occurring after October 22, 1986.
(4) Example.
(b) Exceptions.
(1) Irrevocable trusts.
(2) Transition rule for wills or revocable trusts executed
before October 22, 1986.
(3) Transition rule in the case of mental incompetency.
(4) Retention of trust's exempt status in the case of modifications, etc.
(5) Exceptions to additions rule.
(c) Additional effective dates.
SECTION 26.2611-1 GENERATION-SKIPPING TRANSFER DEFINED.
SECTION 26.2612-1 DEFINITIONS.
(a) Direct skip.
(b) Taxable termination.
(1) In general.
(2) Partial termination.
(c) Taxable distribution.
(1) In general.
(2) Look-through rule not to apply.
(d) Skip person.
(e) Interest in trust.
(1) In general.
(2) Exceptions.
(f) Examples.
SECTION 26.2613-1 SKIP PERSON.
SECTION 26.2632-1 ALLOCATION OF GST EXEMPTION.
(a) General rule.
(b) Lifetime allocations.
(1) Automatic allocation to direct skips.
(2) Automatic allocation to indirect skips made after December 31, 2000.
(3) Election to treat trust as GST trust.
(4) Allocation to other transfers.
(c) Special rules during an estate tax inclusion period.
(1) In general.
(2) Estate tax inclusion period defined.
(3) Termination of an ETIP.
(4) Treatment of direct skips.
(5) Examples.
(d) Allocations after the transferor's death.
(1) Allocation by executor.
(2) Automatic allocation after death.
(e) Effective date.
SECTION 26.2641-1 APPLICABLE RATE OF TAX.
SECTION 26.2642-1 INCLUSION RATIO.
(a) In general.
(b) Numerator of applicable fraction.
(1) In general.
(2) GSTs occurring during an ETIP.
(c) Denominator of applicable fraction.
(1) In general.
(2) Zero denominator.
(3) Nontaxable gifts.
(d) Examples.
SECTION 26.2642-2 VALUATION.
(a) Lifetime transfers.
(1) In general.
(2) Special rule for late allocations during life.
(b) Transfers at death.
(1) In general.
(2) Special rule for pecuniary payments.
(3) Special rule for residual transfers after payment of a pecuniary
payment.
(4) Appropriate interest.
(c) Examples.
SECTION 26.2642-3 SPECIAL RULE FOR CHARITABLE LEAD ANNUITY TRUSTS.
(a) In general.
(b) Adjusted GST exemption defined.
(c) Example.
SECTION 26.2642-4 REDETERMINATION OF APPLICABLE FRACTION.
(a) In general.
(1) Multiple transfers to a single trust.
(2) Consolidation of separate trusts.
(3) Property included in transferor's gross estate.
(4) Imposition of recapture tax under section 2032A.
(b) Examples.
SECTION 26.2642-5 FINALITY OF INCLUSION RATIO.
(a) Direct skips.
(b) Other GSTs.
Section 26.2642-6 Qualified severance.
(a) In general.
(b) Qualified severance defined.
(c) Effective date of qualified severance.
(d) Requirements for a qualified severance.
(e) Reporting a qualified severance.
(f) Time for making a qualified severance.
(g) Trusts that were irrevocable on September 25, 1985.
(1) In general.
(2) Trusts in receipt of a post-September 25, 1985, addition.
(h) Treatment of trusts resulting from a severance that is not a qualified
severance.
(i) [Reserved]
(j) Examples.
(k) Effective date.
(1) In general.
(2) Transition rule.
Section 26.2651-1 Generation assignment.
(a) Special rule for persons with a deceased parent.
(1) In general.
(2) Special rules.
(3) Established or derived.
(4) Special rule in the case of additional contributions to a trust.
(a) Limited application to collateral heirs.
(b) Examples.
Section 26.2651-2 Individual assigned to more than one generation.
(a) In general.
(b) Exception.
(c) Special rules.
(1) Corresponding generation adjustment.
(2) Continued application of generation assignment.
(d) Example.
Section 26.2651-3 Effective dates.
(a) In general.
(b) Transition rule.
SECTION 26.2652-1 TRANSFEROR DEFINED; OTHER DEFINITIONS.
(a) Transferor defined.
(1) In general.
(2) Transfers subject to Federal estate or gift tax.
(3) Special rule for certain QTIP trusts.
(4) Exercise of certain nongeneral powers of appointment.
(5) Split-gift transfers.
(6) Examples.
(b) Trust defined.
(1) In general.
(2) Examples.
(c) Trustee defined.
(d) Executor defined.
(e) Interest in trust.
SECTION 26.2652-2 SPECIAL ELECTION FOR QUALIFIED TERMINABLE INTEREST PROPERTY.
(a) In general.
(b) Time and manner of making election.
(c) Transitional rule.
(d) Examples.
SECTION 26.2653-1 TAXATION OF MULTIPLE SKIPS.
(a) General rule.
(b) Examples.
SECTION 26.2654-1 CERTAIN TRUSTS TREATED AS SEPARATE TRUSTS.
(a) Single trust treated as separate trusts.
(1) Substantially separate and independent shares.
(2) Multiple transferors with respect to a single trust.
(3) Severance of a single trust.
(4) Allocation of exemption.
(5) Examples.
(b) Division of a trust included in the gross estate.
(1) In general.
(2) Special rule.
(3) Allocation of exemption.
(4) Example.
(c) Cross reference.
SECTION 26.2662-1 GENERATION-SKIPPING TRANSFER TAX RETURN REQUIREMENTS.
(a) In general.
(b) Form of return.
(1) Taxable distributions.
(2) Taxable terminations.
(3) Direct skip.
(c) Person liable for tax and required to make return.
(1) In general.
(2) Special rule for direct skips occurring at death with respect to
property held in trust arrangements.
(3) Limitation on personal liability of trustee.
(4) Exceptions.
(d) Time and manner of filing return.
(1) In general.
(2) Exceptions.
(e) Place for filing returns.
(f) Lien on property.
SECTION 26.2663-1 RECAPTURE TAX UNDER SECTION 2032A.
SECTION 26.2663-2 APPLICATION OF CHAPTER 13 TO TRANSFERS BY NONRESIDENTS NOT CITIZENS OF
THE UNITED STATES.
(a) In general.
(b) Transfers subject to Chapter 13.
(1) Direct skips.
(2) Taxable distributions and taxable terminations.
(c) Trusts funded in part with property subject to Chapter 13 and in part with
property not subject to Chapter 13.
(1) In general.
(2) Nontax portion of the trust.
(3) Special rule with respect to estate tax inclusion period.
(d) Examples.
(e) Transitional rule for allocations for transfers made before December 27, 1995.
[T.D. 8187, 53 FR 8442, Mar. 15, 1988; 53 FR 18839, May 25, 1988. Revised by
T.D. 8644, 60 FR 66898-66926, Dec. 27, 1995, as amended by
T.D. 8912, 65 FR 79735-79740, Dec. 20, 2000;
T.D. 9208, 70 FR 37258-37263, June 29, 2005;
T.D. 9214, 70 FR 41140-41144, July 18, 2005;
T.D. 9348, 72 FR 42291-42298, Aug. 2, 2007;
T.D. 9421, 73 FR 44649-44653, July 31, 2008.]
