26 U.S.C. § 2652 — Other definitions
submitted 40 years ago by Pub. L. 99-514 to r/title-26-INTERNAL-REVENUE-CODE · 540 words · no verdicts yet
This section defines “transferor,” “trust,” “trustee,” “interest,” and “executor” for this chapter. It also gives special rules for gift-splitting, certain trusts, tax-avoidance interests, and support obligations.
(a) Transferor. For this chapter, “transferor” generally means the decedent for property subject to the estate tax under chapter 11, and the donor for property subject to the gift tax under chapter 12. An individual is treated as transferring any property for which that individual is the transferor. If a married couple splits a gift under section 2513, each spouse is treated as making the part assigned to that spouse. For a trust that receives a deduction for qualified terminable interest property under section 2056(b)(7) or 2523(f), the decedent’s or donor spouse’s estate may elect to treat all trust property as though that qualified-terminable-interest election had not been made.
(b) Trust and trustee. (1) “Trust” includes an arrangement that is not technically a trust but has substantially the same effect, other than an estate. (2) For such an arrangement, “trustee” means the person who actually or constructively possesses the property. (3) Examples include life estates and remainders, estates for years, and insurance and annuity contracts.
(c) Interest. (1) A person has an interest in trust property if, when the determination is made, the person has a right other than a future right to receive trust income or principal; is allowed to receive trust income or principal currently and is not described in section 2055(a); or is described in section 2055(a) and the trust is a charitable remainder annuity trust, a charitable remainder unitrust under section 664, or a pooled income fund* under section 642(c)(5). (2) An interest used mainly to delay or avoid a tax under this chapter is ignored. (3) An obligation to use trust income or principal for support under State law is ignored if the use is discretionary or follows a State law substantially equivalent to the Uniform Gifts to Minors Act.
(d) Executor. For this chapter, “executor” has the meaning given in section 2203.
For purposes of this chapter—
Except as provided in this subsection or section 2653(a), the term “transferor” means—
in the case of any property subject to the tax imposed by chapter 11, the decedent, and
in the case of any property subject to the tax imposed by chapter 12, the donor.
An individual shall be treated as transferring any property with respect to which such individual is the transferor.
If, under section 2513, one-half of a gift is treated as made by an individual and one-half of such gift is treated as made by the spouse of such individual, such gift shall be so treated for purposes of this chapter.
In the case of—
any trust with respect to which a deduction is allowed to the decedent under section 2056 by reason of subsection (b)(7) thereof, and
any trust with respect to which a deduction to the donor spouse is allowed under section 2523 by reason of subsection (f) thereof,
the estate of the decedent or the donor spouse, as the case may be, may elect to treat all of the property in such trust for purposes of this chapter as if the election to be treated as qualified terminable interest property had not been made.
The term “trust” includes any arrangement (other than an estate) which, although not a trust, has substantially the same effect as a trust.
In the case of an arrangement which is not a trust but which is treated as a trust under this subsection, the term “trustee” shall mean the person in actual or constructive possession of the property subject to such arrangement.
Arrangements to which this subsection applies include arrangements involving life estates and remainders, estates for years, and insurance and annuity contracts.
A person has an interest in property held in trust if (at the time the determination is made) such person—
has a right (other than a future right) to receive income or corpus from the trust,
is a permissible current recipient of income or corpus from the trust and is not described in section 2055(a), or
is described in section 2055(a) and the trust is—
a charitable remainder annuity trust,
a charitable remainder unitrust within the meaning of section 664, or
a pooled income fund* within the meaning of section 642(c)(5).
For purposes of paragraph (1), an interest which is used primarily to postpone or avoid any tax imposed by this chapter shall be disregarded.
The fact that income or corpus of the trust may be used to satisfy an obligation of support arising under State law shall be disregarded in determining whether a person has an interest in the trust, if—
such use is discretionary, or
such use is pursuant to the provisions of any State law substantially equivalent to the Uniform Gifts to Minors Act.
For purposes of this chapter, the term “executor” has the meaning given such term by section 2203.
Source credit: (Added Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2726; amended Pub. L. 100–647, title I, § 1014(g)(6), (8), (9), (14), (20), Nov. 10, 1988, 102 Stat. 3565–3567; Pub. L. 105–34, title XIII, § 1305(b), Aug. 5, 1997, 111 Stat. 1040; Pub. L. 105–206, title VI, § 6013(a)(3), (4)(A), July 22, 1998, 112 Stat. 819.)
- 1986Enacted · Pub. L. 99-514 · 100 Stat. 2726
- 1988Amended · Pub. L. 100-647 · 102 Stat. 3565
- 1997Amended · Pub. L. 105-34 · 111 Stat. 1040
- 1998Amended · Pub. L. 105-206 · 112 Stat. 819
A history note hasn’t been published yet. The record shows enactment by Pub. L. 99-514 on 1986-10-22.
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