PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2417 spouse for purposes of this chapter (or would be includible if such spouse were a citizen or resident of the United States), any benefit which is allowable (or would be allowable if such spouse were a citizen or resident of the United States) with respect to such property to the estate of such spouse under section 2032, 2032A, 2055, 2056, or 6166 shall be allowed for purposes of the tax imposed by paragraph (1)(B). "(B) SECTION SOS. —I f the estate of the surviving spouse meets the requirements of section 303 with respect to any property described in subparagraph (A), for purposes of section 303, the tax imposed by paragraph (1)(B) with re- spect to such property shall be treated as a Federal estate tax payable with respect to the estate of the surviving spouse. "(C) SECTION 6161(a)(2). —The provisions of section 6161(a)(2) shall apply with respect to the tax imposed by paragraph (1)(B), and the reference in such section to the executor shall be treated as a reference to the trustees of the trust. "(11) SPBCIiLL RULE WHERE DISTRIBUTION TAX PAm OUT OF TRUST. —For purposes of this subsection, if any portion of the tax imposed by paragraph (I)(A) with respect to any distribution is paid out of the trust, an amount equal to the portion so paid shall be treated as a distribution described in paragraph (I)(A). "(12) SPECIAL RULE WHERE SPOUSE sECOiifES CITIZEN.— I f the surviving spouse of the decedent becomes a citizen of the United Stotes and if— "(A) such spouse was a resident of the United Stotes at all times after the date of the death of the decedent and before such spouse becomes a citizen of the United Stotes, "(B) no tax was imposed by paragraph (I)(A) with respect to any distribution before such spouse becomes such a citizen, or "(C) such spouse elects— "(i) to treat any distribution on which tax was im- posed by paragraph (I)(A) as a taxable gift made by such spouse for purposes of— "(1) section 2001, and "(n) determining the amount of the tax imposed by section 2501 on actual taxable gifts made by such spouse during the year in which the spouse becomes a citizen or any subsequent year, and "(ii) to treat any reduction in the tax imposed by paragraph (I)(A) by reason of the credit allowable under section 2010 with respect to the decedent as a credit allowable to such surviving spouse under section 2505 for purposes of determining the amount of the credit allowable under section 2505 with respect to taxable gifts made by the surviving spouse during the year in which the spouse becomes a citizen or any subsequent year, paragraph (I)(A) shall not apply to any distributions after such spouse becomes such a citizen (and paragraph (1)(B) shall not apply). "(13) COORDINATION WFTH SECTION 1015.—For purposes of sec- Gifts and tion 1015, any distribution on which tax is imposed by para- property.
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