PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1883
time married to the g r a n to r shall be assigned to the grantor's generation, " (3) a relationship by the half blood shall be treated as a relationship by the whole blood, " (4) a relationship by legal adoption shall be treated as a relationship by blood, " (5) an individual who is not assigned to a generation by reason of the foregoing paragraph s shall be assigned to a generation on the basis of the date of such individual's birth, with— " (A) an individual born not more than 121/^ years after the date of the birth of the g r a n to r assigned to the grantor's generation, " (B) an individual born more than 121/^ years b u t not more than 371/^ years after the date of the birth of the g r a n to r assigned to the first generation younger than the grantor, and " (C) similar rules for a new generation every 25 years, " (6) a n individual who, b u t for this paragraph, would be assigned to more than one generation shall be assigned to the youngest such generation, and " (7) if any beneficiary of the trust is an estate or a trust, partnership, corporation, or other entity (other than a n organization described in section 511(a)(2) and other than a charitable t r u s t described i n section 5 1 1 (b)(2)), each individual having a n indirect interest or power i n the t r u s t through such entity shall be treated as a beneficiary of the trust and shall be assigned to a generation under the foregoing provisions of this subsection. " (d) G E N E R A T I O N - S K I P P I N G TIRUST E Q U IV A L E N T. —
" (1) IN GENERAL.—For purposes of this chapter, the term 'generation-skipping trust equivalent' means any arrangement which, although not a trust, has substantially the same effect as a generation-skipping trust. "(2)
EXAMPLES
OF ARRANGEMENTS
TO W H I C H
SUBSECTION
RELATES.—Arrangements to be taken into account for purposes of determining whether or not paragraph (1) applies include ( b u t are not limited to) arrangements involving life estates and remainders, estates for years, insurance and annuities, and split interests. " (3) REFERENCES TO TRUST INCLUDE REFERENCES TO TRUST EQUIV-
ALENTS.—Any reference in this chapter in respect of a generationskipping trust shall include the appropriate reference in respect of a generation-skipping t r u s t equivalent. "SEC. 2612. DEEMED TRANSFEROR. 26 USC 2612. " (a) GENERAL RULE. — For purposes of t h i s chapter, the deemed transferor with respect to a transfer is— " (1) except as provided i n paragraph (2), the p a r e n t of the transferee of the property who is more closely related to the grantor of the trust than the other p a r e n t of such transferee (or if neither parent is related to such grantor, the parent having a closer affinity to the g r a n to r), o r " (2) if the p a r e n t described in paragraph (1) is not a younger generation beneficiary of the t r u s t but 1 or more ancestors of the transferee i s a younger generation beneficiary related by blood or adoption to the g r a n to r of the trust, the youngest of such ancestors. " (b) DETERMINATION OF RELATIONSHIP. — For purposes of subsection
(a), a parent related to the g r a n to r of the trust by blood or adoption is more closely related than a p a r e n t related to such g r a n to r by marriage.
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