PUBLIC LAW 95-600—NOV. 6, 1978
92 STAT. 2883
ing of section 267(c)(4)) shall be treated as owned by the 26 USC 267. decedent," (b) ELECTION FOR PURPOSES OF THE 20-PERCENT REQUIREMENTS WITH RESPECT TO PARTNERSHIP INTERESTS AND STOCK WHICH IS NOT READ-
ILY TRADABLE.—Subsection (b) of section 6166 (relating to definitions 26 USC 6166. and special rules) is amended by adding at the end thereof the following new paragraph: "(7) PARTNERSHIP INTERESTS AND STOCK WHICH IS NOT READILY
TRADABLE.—
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"(A) IN GENERAL.—If the executor elects the benefits of this paragraph (at such time and in such manner as the Secretary shall by regulations prescribe), then— "(i) for purposes of paragraph (l)(B)(i) or (l)(C)(i) (whichever is appropriate) and for purposes of subsection (c), any capital interest in a partnership and any non-readily-tradable stock which (after the application of paragraph (2)) is treated as owned by the decedent shall be treated as included in determining the value of the decedent's gross estate, "(ii) the executor shall be treated as having selected under subsection (a)(3) the date prescribed by section 6151(a), and 26 USC 6151. "(iii) section 66010") (relating to 4-percent rate of 26 USC 6601. interest) shall not apply. "(B) NON-READILY-TRADABLE STOCK DEFINED.—For purposes
of this paragraph, the term 'non-readily-tradable stock' means stock for which, at the time of the decedent's death, there was no market on a stock exchange or in an over-thecounter market." (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to the estates of decedents dying after the date of the enactment of this Act. SEC. 513. SUBORDINATION OF SPECIAL LIENS FOR ADDITIONAL ESTATE TAX ATTRIBUTABLE TO FARM, ETC., VALUATION. (a) GENERAL RULE.—Subsection (d) of section 6325 (relating to subordination of lien) is amended by striking out "or" at the end of paragraph (1), by striking out the period at the end of paragraph (2) and inserting in lieu thereof ", or", and by adding at the end thereof the following new paragraph: "(3) in the case of any lien imposed by section 6324B, if the Secretary determines that the United States will be adequately secured after such subordination." (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply with respect to the estates of decedents dying after December 31, 1976. SEC. 514. AMENDMENT OF GOVERNING INSTRUMENTS TO MEET REQUIREMENTS FOR GIFTS OF SPLIT INTEREST TO CHARITY.
26 USC 6166 "ote.
26 USC 6325.
26 USC 6324B. 26 USC 6325 "ote.
(a) CHARITABLE LEAD TRUSTS AND CHARITABLE REMAINDER TRUSTS IN THE CASE OF ESTATE TAX.—The first sentence of paragraph (3) of
section 2055(e) is amended to read as follows: "In the case of a will 26 USC 2055. executed before December 31, 1977, or a trust created before such date, if a deduction is not allowable at the time of the decedent's death because of the failure of an interest in property which passes from the decedent to a person, or for a use, described in subsection (a) J to meet the requirements of subparagraph (A) or (B) of paragraph (2) of this subsection, and if the governing instrument is amended or
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