§2612 — Taxable termination; taxable distribution; direct skip

6 cases·6 cited

Statute Text — 26 U.S.C. §2612

(a)Taxable termination

(1)General rule

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—

(A)

immediately after such termination, a non-skip person has an interest in such property, or

(B)

at no time after such termination may a distribution (including distributions on termination) be made from such trust to a skip person.

(2)Certain partial terminations treated as taxable

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.

(b)Taxable distribution

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).

(c)Direct skip

For purposes of this chapter—

(1)In general

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.

(2)Look-thru rules not to apply

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.

Treasury Regulations

Treas. Reg. §Treas. Reg. §26.2612-1 Definitions
Treas. Reg. §Treas. Reg. §26.2612-1(a) Direct skip.
Treas. Reg. §Treas. Reg. §26.2612-1(b) Taxable termination—(1) In general.
Treas. Reg. §Treas. Reg. §26.2612-1(c) Taxable distribution—(1) In general.
Treas. Reg. §Treas. Reg. §26.2612-1(d) Skip person.
Treas. Reg. §Treas. Reg. §26.2612-1(e) Interest in trust—(1) In general.
Treas. Reg. §Treas. Reg. §26.2612-1(f) Examples.
Treas. Reg. §Treas. Reg. §26.2612-1(i) §26.2612-1(i)

6 Citing Cases

James A. Picard, Petitioner T.C. Memo. 1997-320 · 1997

at the time of death, or two-thirds (2/3) of the retirement allowance as it was at death, as the case may be, shall be continued, regardless of the age of the surviving widow, to the dependents of the member in the order of succession as defined in Section 2612, provided that if retirement was for injury received in or illness caused by the performance of duty and if death occurs prior to the date upon which the member would have qualified for service retirement, the allowance continued shall be

Estate of Milada S. Neumann, Deceased; Eric W. Shaw, Ancillary Administrator, C.T.A., Petitioners 106 T.C. No. 10 · 1996

ncluding-- * * * * * * * (2) regulations (consistent with the principles of chapters 11 and 12) providing for 2 Sec. 2614(b) disappeared in the 1986 amendments presumably because Congress intended the limitation to be reflected in the definitions in sec. 2612. - 5 - the application of this chapter in the case of transferors who are nonresidents not citizens of the United States, * * * No regulation in respect of generation-skipping transfers by nonresident aliens had been issued at the time of d

Estate of Neumann v. Commissioner 106 T.C. 216 · 1996

of the date of decedent’s death, and all Rule references are to the Tax Court Rules of Practice and Procedure. Sec. 2614(b) disappeared in the 1986 amendments presumably because Congress intended the limitation to be reflected in the definitions in sec. 2612. For a critical analysis of the proposed regulations, see Schlesinger, “The Generation-Skipping Transfer Tax — A Reexamination on Its Ninth Anniversary”, 74 Taxes 49 (Jan, 1996); Heller & Sasaki, “Proposed Regulation Section 26.2663-2 and t

Anchor National Life Insurance v. Commissioner 93 T.C. 382 · 1989

Conoshenti v. Pub Ser Elec & Gas · Cir.

Richard Conoshenti v. Public Service Electric & Gas Company 364 F.3d 135 · Cir.