26 U.S.C. § 2612
§ 2612. Taxable termination; taxable distribution; direct skip
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1976 by the Tax Reform Act of 1976. Last changed August 5, 1997 by the Taxpayer Relief Act of 1997.
Every change, newest first (4)
- August 5, 1997Taxpayer Relief Act of 1997
- November 10, 1988Technical and Miscellaneous Revenue Act of 1988
- October 22, 1986Tax Reform Act of 1986
- October 4, 1976Tax Reform Act of 1976 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
For purposes of this chapter, the term “taxable termination” means the termination (by death, lapse of time, release of power, or otherwise) of an interest in property held in a trust unless—
immediately after such termination, a non-skip person has an interest in such property, or
at no time after such termination may a distribution (including distributions on termination) be made from such trust to a skip person.
If, upon the termination of an interest in property held in trust by reason of the death of a lineal descendant of the transferor, a specified portion of the trust’s assets are distributed to 1 or more skip persons (or 1 or more trusts for the exclusive benefit of such persons), such termination shall constitute a taxable termination with respect to such portion of the trust property.
For purposes of this chapter, the term “taxable distribution” means any distribution from a trust to a skip person (other than a taxable termination or a direct skip).
For purposes of this chapter—
The term “direct skip” means a transfer subject to a tax imposed by chapter 11 or 12 of an interest in property to a skip person.
Solely for purposes of determining whether any transfer to a trust is a direct skip, the rules of section 2651(f)(2) shall not apply.