< Back to S. 2445 (103rd Congress, 1993–1994)

Text of A bill to amend the Internal Revenue Code of 1986 to limit the applicability of the generation-skipping transfer tax.

...transfer tax.

This bill was introduced on September 21, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 21, 1994 (Introduced).

Source: GPO

S 2445 IS

103d CONGRESS

2d Session

S. 2445

To amend the Internal Revenue Code of 1986 to limit the applicability of the generation-skipping transfer tax.

IN THE SENATE OF THE UNITED STATES

September 21 (legislative day, SEPTEMBER 12), 1994

Mr. DANFORTH (for himself, Mr. BOREN, Mr. WALLOP, Mr. PRYOR, Mr. GRASSLEY, Mr. BAUCUS, Mr. CHAFEE, Mr. RIEGLE, Mr. ROTH, Mr. DASCHLE, and Mr. BREAUX) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to limit the applicability of the generation-skipping transfer tax.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. LIMITATION ON APPLICABILITY OF GENERATION-SKIPPING TRANSFER TAX.

    (a) IN GENERAL- Section 2651 of the Internal Revenue Code of 1986 (relating to generation assignment) is amended by redesignating subsection (e) as subsection (f), and by inserting after subsection (d) the following new subsection:

    ‘(e) Special Rule for Persons With a Deceased Parent-

      ‘(1) IN GENERAL- For purposes of determining whether any transfer is a generation-skipping transfer, if--

        ‘(A) an individual who has an interest in property is a descendant of a parent of the transferor (or the transferor’s spouse or former spouse), and

        ‘(B) such individual’s parent who is a lineal descendant of the parent of the transferor (or the transferor’s spouse or former spouse) is dead at the time the transfer from which such interest is established or derived is subject to a tax imposed by chapter 11 or 12 upon the transferor (and if there shall be more than 1 such time, then at the latest such time),

      such individual shall be treated as if such individual were a member of the generation which is 1 generation below the lower of the transferor’s generation or the generation assignment of the youngest living ancestor of such individual who is also a descendant of the parent of the transferor (or the transferor’s spouse or former spouse), and the generation assignment of any descendant of such individual shall be adjusted accordingly.

      ‘(2) LIMITED APPLICATION OF SUBSECTION TO COLLATERAL HEIRS- This subsection shall not apply to any individual who is not a lineal descendant of the transferor (or the transferor’s spouse or former spouse) if, at the time of the transfer, such transferor has any living lineal descendant.’

    (b) CONFORMING AMENDMENTS-

      (1) Section 2612(c) of the Internal Revenue Code of 1986 (defining direct skip) is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).

      (2) Section 2612(c)(2) of such Code (as so redesignated) is amended by striking ‘section 2651(e)(2)’ and inserting ‘section 2651(f)(2)’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to terminations, distributions, and transfers occurring after the date of the enactment of this section.