Internal Revenue Code:Sec. 2631. GST exemption

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 13 - TAX ON GENERATION-SKIPPING TRANSFERS
        Subchapter D - GST Exemption
      

Statute

    Sec. 2631. GST exemption
 
    (a) General rule
      For purposes of determining the inclusion ratio, every individual
    shall be allowed a GST exemption of $1,000,000 which may be
    allocated by such individual (or his executor) to any property with
    respect to which such individual is the transferor.
    (b) Allocations irrevocable
      Any allocation under subsection (a), once made, shall be
    irrevocable.
    (c) Inflation adjustment
      (1) In general
        In the case of any calendar year after 1998, the $1,000,000
      amount contained in subsection (a) shall be increased by an
      amount equal to -
          (A) $1,000,000, multiplied by
          (B) the cost-of-living adjustment determined under section
        1(f)(3) for such calendar year by substituting ''calendar year
        1997'' for ''calendar year 1992'' in subparagraph (B) thereof.
      If any amount as adjusted under the preceding sentence is not a
      multiple of $10,000, such amount shall be rounded to the next
      lowest multiple of $10,000.
      (2) Allocation of increase
        Any increase under paragraph (1) for any calendar year shall
      apply only to generation-skipping transfers made during or after
      such calendar year; except that no such increase for calendar
      years after the calendar year in which the transferor dies shall
      apply to transfers by such transferor.
 

Sources

    (Added Pub. L. 99-514, title XIV, Sec. 1431(a), Oct. 22, 1986, 100
    Stat. 2721; amended Pub. L. 105-34, title V, Sec. 501(d), Aug. 5,
    1997, 111 Stat. 846; Pub. L. 105-206, title VI, Sec. 6007(a)(1),
    July 22, 1998, 112 Stat. 806; Pub. L. 107-16, title V, Sec. 521(c),
    June 7, 2001, 115 Stat. 72.)
 

Amendment of Section

        ADJUSTMENT OF GENERATION-SKIPPING TRANSFER TAX EXEMPTION FOR
                             CALENDAR YEAR 2002
        For adjustment of generation-skipping transfer tax exemption
      under this section for calendar year 2002, see section 3.20 of
      Revenue Procedure 2001-59, set out as a note under section 1 of
      this title.
                            AMENDMENT OF SECTION
        Pub. L. 107-16, title V, Sec. 521(c), (e)(3), title IX, Sec.
      901, June 7, 2001, 115 Stat. 72, 150, provided that, applicable
      to estates of decedents dying, and generation-skipping transfers,
      after Dec. 31, 2003, this section is temporarily amended as
      follows:
        (1) in subsection (a), by substituting ''amount'' for ''of
      $1,000,000''; and
        (2) by amending subsection (c) to read as follows:
    (c) GST exemption amount
      For purposes of subsection (a), the GST exemption amount for any
    calendar year shall be equal to the applicable exclusion amount
    under section 2010(c) for such calendar year.
        See Effective and Termination Dates of 2001 Amendment note
      below.
 

Miscellaneous

                                 AMENDMENTS
      1998 - Subsec. (c). Pub. L. 105-206 reenacted heading without
    change and amended text generally.  Prior to amendment, text read
    as follows: ''In the case of an individual who dies in any calendar
    year after 1998, the $1,000,000 amount contained in subsection (a)
    shall be increased by an amount equal to -
        ''(1) $1,000,000, multiplied by
        ''(2) the cost-of-living adjustment determined under section
      1(f)(3) for such calendar year by substituting 'calendar year
      1997' for 'calendar year 1992' in subparagraph (B) thereof.
    If any amount as adjusted under the preceding sentence is not a
    multiple of $10,000, such amount shall be rounded to the next
    lowest multiple of $10,000.''
      1997 - Subsec. (c). Pub. L. 105-34 added subsec. (c).
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Amendment by Pub. L. 107-16 applicable to estates of decedents
    dying, and generation-skipping transfers, after Dec. 31, 2003, see
    section 521(e)(3) of Pub. L. 107-16, set out as a note under
    section 2010 of this title.
      Amendment by Pub. L. 107-16 inapplicable to estates of decedents
    dying, gifts made, or generation skipping transfers, after Dec. 31,
    2010, and the Internal Revenue Code of 1986 to be applied and
    administered to such estates, gifts, and transfers as if such
    amendment had never been enacted, see section 901 of Pub. L.
    107-16, set out as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1998 AMENDMENT
      Amendment by Pub. L. 105-206 effective, except as otherwise
    provided, as if included in the provisions of the Taxpayer Relief
    Act of 1997, Pub. L. 105-34, to which such amendment relates, see
    section 6024 of Pub. L. 105-206, set out as a note under section 1
    of this title.
                               EFFECTIVE DATE
      Section applicable to generation-skipping transfers (within the
    meaning of section 2611 of this title) made after Oct. 22, 1986,
    except as otherwise provided, see section 1433 of Pub. L. 99-514,
    set out as a note under section 2601 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 2632 of this title.