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PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3671
"(2) the surviving spouse of the decedent is entitled to all the income from the property in such trust, payable annually or at more frequent intervals, "(3) such trust meets such requirements as the Secretary may by regulations prescribe to ensure the collection of any tax imposed by subsection 0)), and ' (4) an election under this section by the executor of the decedent applies to such trust. "(b) TAX TREATMENT OF TRUST.— "(1) IMPOSITION OF ESTATE TAX.—There is hereby imposed an
estate tax on— "(A) any distribution before the date of the death of the surviving spouse from a qualified domestic trust other than a distribution of income required under subsection (a)(2), and "(B) the value of the property remaining in a qualified domestic trust on the date of the death of the surviving spouse. "(2) AMOUNT OF TAX.—
"(A) IN GENERAL.—In the case of any taxable event, the amount of the estate tax imposed by paragraph (1) shall be the amount equal to— "(i) the tax which would have been imposed under section 2001 on the estate of the decedent if the taxable estate of the decedent had been increased by the sum of— "(I) the amount involved in such taxable event, plus "(II) the aggregate amount involved in previous taxable evente with respect to qualified domestic trusts of such decedent, reduced by "(ii) the tax which would have been imposed under section 2001 on the estate of the decedent if the taxable estate of the decedent had been increased by the amount referred to in clause (i)(H). "(B) TENTATIVE TAX WHERE TAX OF DECEDENT NOT FINALLY DETERMINED.—
"(i) IN GENERAL.—If the tax imposed on the estate of the decedent under section 2001 is not finally determined before the taxable event, the amount of the tax imposed by paragraph (1) on such event shall be determined by using the highest rate of tax in effect under section 2001 as of the date of the decedent's death. "(ii) REFUND OF EXCESS WHEN TAX FINALLY DETERMINED.—If—
"(I) the amount of the tax determined under clause (i), exceeds "(II) the tax determined under subparagraph (A) on the basis of the final determination of the tax imposed by section 2001 on the estate of the decedent, such excess shall be allowed as a credit or refund if claim therefore is filed not later than 1 year after the date of such final determination. "(3) TAX IMPOSED WHERE TRUST CEASES TO QUALIFY.—If any
person other than an individual citizen of the United States or a domestic corporation becomes a trustee of a qualified domestic
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