Generation Skipping Transfer Tax

<div class="Section1">With respect to property transferred after October&nbsp;13, 1987, the GST tax exemption inclusion ratio for any charitable lead annuity trust (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="8104">8104</a>) is to be determined by dividing the amount of exemption allocated to the trust by the value of the property in the trust following the charitable term. For this purpose, the exemption allocated to the trust is increased by interest determined at the interest rate used in determining the amount of the estate or gift tax charitable deduction with respect to such a trust over the charitable term. With respect to a late allocation of the GST exemption (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="880">880</a>), interest accrues only from the date of the late allocation. The amount of GST exemption allocated to the trust is not reduced even though it is determined at a later time that a lesser amount of GST exemption would have produced a zero inclusion ratio.<a href="#_ftn1" name="_ftnref1">¹</a><div class="refs"><br /> <br /> <hr align="left" size="1" width="33%"><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2642(e), Treas. Reg. &sect; 26.2642-3.<br /> <br /> </div></div><br />

<div class="Section1">For decedents dying before 2005, if a GST (other than a direct skip) occurs at the same time as and as a result of the death of an individual, a credit against the GST tax imposed is allowed in an amount equal to the GST tax paid to any state in respect to any property included in the GST, but the amount cannot exceed 5 percent of the GST tax.<a href="#_ftn1" name="_ftnref1">¹</a> The amendments made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001) sunset after December 31, 2012 so that this provision is no longer applicable. Transfers made to estates of decedents, gifts, or GST transfers are treated as if the amendments were never enacted.<a href="#_ftn2" name="_ftnref2">²</a> However, under 2010 TRA, the GST tax rate for 2010 was zero, 35 percent for 2011 and 2012 and 40 percent for 2013 and beyond. The GST exemption was $5.49 million in 2017, and was raised to $11.18 million in 2018, $11.4 million in 2019, $11.58 million in 2020, $11.7 million for 2021, $12.06 million for 2022, $12.92 million in 2023, $13.61 million in 2024 and $13.99 million in 2025 under the 2017 Tax Act.<a href="#_ftn3" name="_ftnref3">³</a></div><br /> <div class="refs"><br /> <br /> <hr align="left" size="1" width="33%" /><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.    IRC § 2604.<br /> <br /> <a href="#_ftnref2" name="_ftn2">2</a>.    IRC §§ 2604(c), 2664, as added by EGTRRA 2001.<br /> <br /> <a href="#_ftnref3" name="_ftn3">3</a>.    Rev. Proc. 2016-55, Pub. Law No. 115-97, Rev. Proc. 2018-18, Rev. Proc. 2018-57, Rev. Proc. 2019-44, Rev. Proc. 2020-45, Rev. Proc. 2021-45, Rev. Proc. 2022-38, Rev. Proc. 2023-34, Rev. Proc. 2024-40.<br /> <br /> </div>

<div class="Section1">In the case of a taxable distribution, the tax is paid by the transferee. In the case of a taxable termination or a direct skip from a trust, the tax is paid by the trustee. In the case of a direct skip (other than a direct skip from a trust), the tax is paid by the transferor. Unless the governing instrument of transfer otherwise directs, the GST tax is charged to the property constituting the transfer.<a href="#_ftn1" name="_ftnref1">¹</a></div><br /> <div class="refs"><br /> <br /> <hr align="left" size="1" width="33%" /><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.    IRC § 2603.<br /> <br /> </div>

<div class="Section1"><br /> <br /> A GST trust is a trust that could have a generation-skipping transfer with respect to the transferor unless:<br /> <ol><br /> <li>The trust provides that more than 25 percent of the trust corpus must be distributed to, or may be withdrawn by, one or more individuals who are non-skip persons, either (a) before the individual’s 46th birthday, (b) on or before a date prior to such birthday, or (c) upon the occurrence of an event that may reasonably be expected to occur before such birthday.</li><br /> <li>The trust provides that more than 25 percent of the trust corpus must be distributed to, or may be withdrawn by, one or more individuals who are non-skip persons and who are living on the date of death of an individual identified in the trust (by name or class) who is more than 10 years older than such individual(s).</li><br /> <li>The trust provides that, if one or more individuals who are non-skip persons die before a date or event described in (1) or (2), more than 25 percent of the trust corpus must either (a) be distributed to the estate(s) of one or more of such individuals, or (b) be subject to a general power of appointment exercisable by one or more of such individuals.</li><br /> <li>Any portion of the trust would be included in the gross estate of a non-skip person (other than the transferor) if such person died immediately after the transfer.</li><br /> <li>The trust is a charitable lead annuity trust (CLAT), charitable remainder annuity trust (CRAT), charitable remainder unitrust (CRUT), or a charitable lead unitrust (CLUT) with a non-skip remainder person.</li><br /> </ol><br /> For purposes of these GST trust rules, the value of transferred property is not treated as includable in the gross estate of a non-skip person nor subject to a power of withdrawal if the withdrawal right does not exceed the amount of the gift tax annual exclusion ($19,000 in 2025, $18,000 in 2024, $17,000 in 2023; $16,000 in 2022; $15,000 in 2018-2021) with respect to the transfer.<a href="#_ftn1" name="_ftnref1">¹</a> It is also assumed that a power of appointment held by a non-skip person will not be exercised.<br /> <br /> </div><br /> <div class="refs"><br /> <br /> <hr align="left" size="1" width="33%" /><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.      Rev. Proc. 2017-58, Rev. Proc. 2019-44, Rev. Proc. 2020-45, Rev. Proc. 2021-45, Rev. Proc. 2022-38, Rev. Proc. 2023-34, Rev. Proc. 2024-40.<br /> <br /> </div>

<div class="Section1">&ldquo;Value&rdquo; of the property is its value at the time of the transfer. In the case of a direct skip of property that is included in the transferor&rsquo;s gross estate, the value of the property is its estate tax value. In the case of a taxable termination with respect to a trust occurring at the same time as and as a result of the death of an individual, an election may be made to value at the alternate valuation date (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="917">917</a>). In any case, the value of the property may be reduced by any consideration given by the transferee.<a href="#_ftn1" name="_ftnref1">¹</a><div class="Section1"><br /> <br /> For purposes of determining the GST inclusion ratio, certain other valuation rules may apply in some instances. For purposes of determining the denominator of the applicable fraction (see above), the value of property transferred during life is its fair market value as of the effective date of the GST exemption allocation (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="879">879</a>). However, with respect to late allocations of the GST exemption to a trust, the transferor may elect (solely for purpose of determining the fair market value of trust assets) to treat the allocation as made on the first day of the month in which the allocation is made. This election is not effective with respect to a life insurance policy, or a trust holding a life insurance policy, if the insured individual has died. For purposes of determining the denominator of the applicable fraction, the value of property included in the decedent&rsquo;s gross estate is its value for estate tax purposes. However, special use valuation (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="760">760</a>) is not available unless the recapture agreement under IRC Section&nbsp;2032A specifically refers to the GST tax. There are special rules in the regulations concerning the allocation of post-death appreciation or depreciation with respect to pecuniary payments and residuary payments made after a pecuniary payment.<a href="#_ftn2" name="_ftnref2">²</a><br /> <br /> </div><div class="refs"><br /> <br /> <hr align="left" size="1" width="33%"><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2624.<br /> <br /> <a href="#_ftnref2" name="_ftn2">2</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2642(b)(2)(A), Treas. Reg. &sect; 26.2642-2.<br /> <br /> </div></div><br />

<div class="Section1">Where the basis of property subject to the GST tax is increased (or decreased) to fair market value because property transferred in a taxable termination occurs at the same time and as a result of the death of an individual, any increase (or decrease) in basis is limited by multiplying such increase (or decrease) by the inclusion ratio used in allocating the GST exemption.<a href="#_ftn1" name="_ftnref1">¹</a></div><br /> <div class="refs"><br /> <br /> <hr align="left" size="1" width="33%" /><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.    IRC § 2654(a)(2).<br /> <br /> </div>

<div class="Section1">In the case of any direct skip which is a nontaxable gift, the inclusion ratio is zero. For this purpose, a nontaxable gift means any transfer of property to the extent the transfer is not treated as a taxable gift by reason of the gift tax annual exclusion (taking into account the split gift provision for married couples&ndash;see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="905">905</a>) or the &ldquo;qualified transfer&rdquo; exclusion (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="905">905</a>). In other words, there is no GST tax imposed on direct skip gifts that come within the gift tax annual exclusion or that are &ldquo;qualified transfers.&rdquo; However, with respect to transfers after March&nbsp;31, 1988, a nontaxable gift which is a direct skip to a trust for the benefit of an individual has an inclusion ratio of zero only if (1) during the life of such individual no portion of the trust corpus or income may be distributed to or for the benefit of any other person, and (2) the trust would be included in such individual&rsquo;s estate if the trust did not terminate before such individual<br /> died.<a href="#_ftn1" name="_ftnref1">¹</a><div class="refs"><br /> <br /> <hr align="left" size="1" width="33%"><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2642(c).<br /> <br /> </div></div><br />

<div class="Section1">Yes. If a split gift is made for gift tax purposes (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="905">905</a>), such gift will be so treated for purposes of the GST tax.<a href="#_ftn1" name="_ftnref1">¹</a> Split gifts allow spouses to, in effect, utilize each other&rsquo;s annual exclusions and exemptions (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="876">876</a>). One memorandum permitted a taxpayer to elect after his spouse&rsquo;s death to split gifts with his spouse and thus take advantage of his spouse&rsquo;s GST tax exemption where the gifts were made by the taxpayer shortly before the spouse&rsquo;s death.<a href="#_ftn2" name="_ftnref2">²</a><div class="refs"><br /> <br /> <hr align="left" size="1" width="33%"><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2652(a)(2).<br /> <br /> <a href="#_ftnref2" name="_ftn2">2</a>.&nbsp;&nbsp;&nbsp; TAM 9404023.<br /> <br /> </div></div><br />

<div class="Section1">The person required to file the return is the person liable for paying the tax (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="891">891</a>). In the case of a direct skip (other than from a trust), the return must be filed on or before the due date for the gift or estate tax return with respect to the transfer. In all other cases, the return must be filed on or before the 15th day of the fourth month after the close of the taxable year of the person required to make the return.<a href="#_ftn1" name="_ftnref1">¹</a><div class="refs"><br /> <br /> <hr align="left" size="1" width="33%"><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2662.<br /> <br /> </div></div><br />

<div class="Section1"><br /> <br /> A generation skipping transfer is a transfer to a person two or more generations younger than the transferor (called a &ldquo;skip person,&rdquo; see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="887">887</a> regarding generation assignments), and can take any one of three forms: (1) a taxable distribution; (2) a taxable termination; and (3) a direct skip. A trust is also a skip person if the trust can benefit only persons two or more generations younger than the transferor.<a href="#_ftn1" name="_ftnref1">¹</a> The GST tax was zero percent for one year in 2010 with a top 35 percent rate in 2011 and 2012.<a href="#_ftn2" name="_ftnref2">²</a> ATRA increased the maximum GST tax rate to 40 percent for tax years beginning after 2012.<a href="#_ftn3" name="_ftnref3">³</a><br /> <p style="text-align: center;"><strong>Transferor</strong></p><br /> A &ldquo;transferor,&rdquo; in the case of any property subject to the federal estate tax, is the decedent. In the case of any property subject to the federal gift tax, the transferor is the donor.<a href="#_ftn4" name="_ftnref4">⁴</a> Thus, to the extent that a lapse of a general power of appointment (including a right of withdrawal) is subject to gift or estate tax, the powerholder becomes the transferor with respect to such lapsed amount.<a href="#_ftn5" name="_ftnref5">⁵</a> Thus, a <em>Crummey</em> powerholder should not be treated as a transferor with respect to the lapse of a withdrawal power if the amount lapsing in any year is no greater than (1) $5,000, or (2) 5 percent of the assets out of which exercise of the power could be satisfied.<a href="#_ftn6" name="_ftnref6">⁶</a><br /> <br /> If there is a generation-skipping transfer of any property and immediately after the transfer such property is held in trust, a different rule (the &ldquo;multiple skip&rdquo; rule) applies to subsequent transfers from that trust. In such case, the trust is treated as if the transferor (for purposes of subsequent transfers) were assigned to the first generation above the highest generation of any person having an &ldquo;interest&rdquo; (see below) in the trust immediately after the transfer.<a href="#_ftn7" name="_ftnref7">⁷</a> If no person holds an interest immediately after the GST, then the transferor is assigned to the first generation above the highest generation of any person in existence at the time of the GST who may subsequently hold an interest in the trust.<a href="#_ftn8" name="_ftnref8">⁸</a><br /> <br /> For the effect of making a &ldquo;reverse QTIP election,&rdquo; see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="876">876</a>.<br /> <p style="text-align: center;"><strong>Direct Skip</strong></p><br /> A direct skip is a transfer subject to federal gift or estate tax to a skip person. However, with respect to transfers before 1998, such a transfer was not a direct skip if the transfer was to a grandchild of the transferor or of the transferor&rsquo;s spouse or former spouse, and the grandchild&rsquo;s parent who was the lineal descendant of the transferor or his spouse or former spouse was dead at the time of the transfer. In other words, a person could be stepped-up in generations because a parent who had been in the line of descent predeceased such person. This rule could be reapplied to lineal descendants below that of a grandchild. Persons assigned to a generation under this rule were also assigned to such generation when such persons received transfers from the portion of a trust attributable to property to which the step-up in generation rule applied.<a href="#_ftn9" name="_ftnref9">⁹</a> For purposes of this predeceased child rule, a living descendant who died no later than 90 days after a transferor was treated as predeceasing the transferor if he or she was treated as predeceased under the governing instrument or state law.<a href="#_ftn10" name="_ftnref10">¹⁰</a> For a discussion of the more expansive predeceased parent rule after 1997, see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="887">887</a>.<br /> <br /> In some circumstances, whether a step-up in generation was available could depend on whether a QTIP or a reverse QTIP marital election was made for GSTT purposes (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="876">876</a>). If the parent of a grandchild-distributee died after the transfer by a grandparent to a generation-skipping trust, but before the distribution from the trust to the grandchild, and a reverse QTIP election had been made, the distribution was a taxable termination and the &ldquo;step-up in generation&rdquo; rule was not available. However, if the reverse QTIP election had not been made, the distribution was eligible for the &ldquo;step-up in generation&rdquo; exception from treatment as a direct skip and was not subject to GSTT.<a href="#_ftn11" name="_ftnref11">¹¹</a><br /> <br /> Also, for purposes of the GST tax, the term &ldquo;direct skip&rdquo; did not include any transfer before January&nbsp;1, 1990 from a transferor to a grandchild of the transferor to the extent that the aggregate transfers from such transferor to such grandchild did not exceed $2 million. This $2 million exemption was available with respect to a transfer in trust only if (1) during the life of such individual no portion of the trust corpus or income could be distributed to or for the benefit of any other person, (2) the trust would be included in such individual&rsquo;s estate if such individual were to die before the trust terminated, and (3) all of the income of the trust had to be distributed at least annually to the grandchild once he reached 21. Requirement<br /> (3) applied only to transfers after June&nbsp;10, 1987. However, the Committee Report indicated that this requirement was not satisfied by a <em>Crummey</em> demand power.<a href="#_ftn12" name="_ftnref12">¹²</a><br /> <br /> The $2 million per grandchild exemption applied to transfers to grandchildren only; the step-up in generation rule for a predeceased parent did not apply. A transfer which would have been a direct skip were it not for the $2 million exemption was likewise exempted from being treated as a taxable termination or taxable distribution. However, the rules which apply to the taxation of multiple skips will apply to subsequent transfers from such trust.<br /> <p style="text-align: center;"><strong>Taxable Termination</strong></p><br /> A taxable termination occurs when an &ldquo;interest in property&rdquo; (see below) held in trust (or some arrangement having substantially the same effect as a trust) for a skip person is terminated by an individual&rsquo;s death, lapse of time, release of a power, or otherwise, unless either (1) a non-skip person has an interest in the trust immediately after such termination, or (2) at no time after the termination may a distribution be made from the trust to a skip person, other than a distribution the probability of which occurring is so remote as to be negligible (i.e., less than a 5 percent actuarial probability). If upon the termination of an interest in a trust by reason of the death of a lineal descendant of the transferor, a portion of the trust is distributed to skip persons (or to trusts for such persons), such partial termination is treated as taxable. If a transfer subject to estate or gift tax occurs at the time of the termination, the transfer is not a taxable termination (but it may be a direct skip).<a href="#_ftn13" name="_ftnref13">¹³</a><br /> <p style="text-align: center;"><strong>Taxable Distribution</strong></p><br /> A taxable distribution is any distribution from a trust to a skip person (other than a taxable termination or a direct skip).<a href="#_ftn14" name="_ftnref14">¹⁴</a><br /> <p style="text-align: center;"><strong>Generation-Skipping Transfer Exceptions</strong></p><br /> However, the following are not considered generation-skipping transfers:<br /> <p style="padding-left: 40px;">(1)&nbsp;&nbsp;&nbsp;&nbsp; Any transfer which, if made during life by an individual, would be a &ldquo;qualified transfer&rdquo; (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="905">905</a>); and</p><br /> <p style="padding-left: 40px;">(2)&nbsp;&nbsp;&nbsp;&nbsp; Any transfer to the extent (a) the property transferred was subject to a prior GST tax, (b) the transferee in the prior transfer was in the same generation as the current transferee or a younger generation, and (c) the transfers do not have the effect of avoiding the GST tax.<a href="#_ftn15" name="_ftnref15">¹⁵</a></p><br /> <p style="text-align: center;"><strong>Interest in Property</strong></p><br /> A person has an &ldquo;interest in property&rdquo; held in trust if (at the time the determination is made) such person&ndash;<br /> <p style="padding-left: 40px;">(1)&nbsp;&nbsp;&nbsp;&nbsp; has a present right to receive income or corpus from the trust (for example, a life income interest);</p><br /> <p style="padding-left: 40px;">(2)&nbsp;&nbsp;&nbsp;&nbsp; is a permissible current recipient of income or corpus from the trust (for example, a beneficiary entitled to distribution of income or corpus, but only in the discretion of the trustee) and is not a charitable organization (specifically, one described in IRC Section&nbsp;2055(a)); or</p><br /> <p style="padding-left: 40px;">(3)&nbsp;&nbsp;&nbsp;&nbsp; is such a charitable organization and the trust is a charitable remainder annuity trust (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="8087">8087</a>), a charitable remainder unitrust (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="8088">8088</a>), or a pooled income fund (see Q <a href="javascript:void(0)" class="accordion-cross-reference" id="8096">8096</a>).</p><br /> In determining whether a person has an interest in a trust, the fact that income or corpus may be used to satisfy a support obligation is disregarded if such use is discretionary or made pursuant to the Uniform Gifts to Minors Act (or similar state statute). In other words, a parent is not treated as having an interest in a trust merely because the parent acts as guardian for a child. However, a parent would be treated as having an interest in the trust if support obligations are mandatory.<a href="#_ftn16" name="_ftnref16">¹⁶</a><br /> <br /> An interest may be disregarded if it is used <em>primarily</em> to postpone or avoid the GST tax.<a href="#_ftn17" name="_ftnref17">¹⁷</a> The regulations provide that an interest is disregarded if <em>a significant purpose</em> for the creation of the interest is the postponement or avoidance of the GST tax.<a href="#_ftn18" name="_ftnref18">¹⁸</a><br /> <p style="text-align: center;"><strong>Effective Date and Transitional Rules</strong></p><br /> The rules explained here and in the succeeding questions apply generally to any generation-skipping transfer (GST) made after October&nbsp;22, 1986. Also, any lifetime transfer after September&nbsp;25, 1985, and on or before October&nbsp;22, 1986, is treated as if made on October&nbsp;23, 1986. These rules will not, however, apply to the following:<br /> <p style="padding-left: 40px;">(1)&nbsp;&nbsp;&nbsp;&nbsp; Any GST under a trust that was irrevocable on September&nbsp;25, 1985, but only to the extent that such transfer is not made out of corpus (or income attributable to such corpus) added to the trust after September&nbsp;25, 1985;</p><br /> <p style="padding-left: 40px;">(2)&nbsp;&nbsp;&nbsp;&nbsp; Any GST under a will or revocable trust executed before October&nbsp;22, 1986, if the decedent died before January&nbsp;1, 1987; and</p><br /> <p style="padding-left: 40px;">(3)&nbsp;&nbsp;&nbsp;&nbsp; Any GST&ndash;</p><br /> <p style="padding-left: 80px;">(a)&nbsp; under a trust to the extent such trust consists of property included in the gross estate of a decedent (other than property transferred by the decedent during his life after October&nbsp;22, 1986), or reinvestments thereof, or</p><br /> <p style="padding-left: 80px;">(b)&nbsp; which is a direct skip that occurs by reason of the death of any decedent;</p><br /> but only if such decedent was, on October&nbsp;22, 1986, under a mental disability to change the disposition of his property and did not regain his competence to dispose of such property before the date of his death.<a href="#_ftn19" name="_ftnref19">¹⁹</a> It appears that Congress does not intend for the third grandfathering rule to apply with respect to property transferred after August&nbsp;3, 1990 to an incompetent person, or to a trust of such a person.<a href="#_ftn20" name="_ftnref20">²⁰</a><br /> <br /> <div class="refs"><br /> <br /> <hr align="left" size="1" width="33%"><br /> <br /> <a href="#_ftnref1" name="_ftn1">1</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IRC &sect;&sect; 2611(a), 2613.<br /> <br /> <a href="#_ftnref2" name="_ftn2">2</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IRC &sect; 2664.<br /> <br /> <a href="#_ftnref3" name="_ftn3">3</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; American Taxpayer Relief Act of 2012, Pub. Law No.&nbsp;112-240, &sect; 101.<br /> <br /> <a href="#_ftnref4" name="_ftn4">4</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IRC &sect; 2652(a)(1).<br /> <br /> <a href="#_ftnref5" name="_ftn5">5</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treas. Reg. &sect; 26.2652-1(a).<br /> <br /> <a href="#_ftnref6" name="_ftn6">6</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Let. Rul. 9541029.<br /> <br /> <a href="#_ftnref7" name="_ftn7">7</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IRC &sect; 2653(a).<br /> <br /> <a href="#_ftnref8" name="_ftn8">8</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treas. Reg. &sect; 26.2653-1.<br /> <br /> <a href="#_ftnref9" name="_ftn9">9</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IRC &sect; 2612(c)(2), prior to amendment by TRA &rsquo;97.<br /> <br /> <a href="#_ftnref10" name="_ftn10">10</a>.&nbsp;&nbsp;&nbsp; Treas. Reg. &sect; 26.2612-1(a)(2)(i).<br /> <br /> <a href="#_ftnref11" name="_ftn11">11</a>.&nbsp;&nbsp;&nbsp; Rev. Rul. 92-26, 1992-2 CB 314.<br /> <br /> <a href="#_ftnref12" name="_ftn12">12</a>.&nbsp;&nbsp;&nbsp; TRA &rsquo;86, &sect; 1433(b)(3), as amended by TAMRA &rsquo;88, &sect; 1014(h)(3).<br /> <br /> <a href="#_ftnref13" name="_ftn13">13</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2612(a); Treas. Reg. &sect; 26.2612-1(b).<br /> <br /> <a href="#_ftnref14" name="_ftn14">14</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2612(b).<br /> <br /> <a href="#_ftnref15" name="_ftn15">15</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2611(b).<br /> <br /> <a href="#_ftnref16" name="_ftn16">16</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2652(c)(3).<br /> <br /> <a href="#_ftnref17" name="_ftn17">17</a>.&nbsp;&nbsp;&nbsp; IRC &sect; 2652(c)(2).<br /> <br /> <a href="#_ftnref18" name="_ftn18">18</a>.&nbsp;&nbsp;&nbsp; Treas. Reg. &sect; 26.2612-1(e)(2)(ii).<br /> <br /> <a href="#_ftnref19" name="_ftn19">19</a>.&nbsp;&nbsp;&nbsp; TRA &rsquo;86, &sect; 1433(a), (b), as amended by TAMRA &rsquo;88, &sect; 1014(h)(2).<br /> <br /> <a href="#_ftnref20" name="_ftn20">20</a>.&nbsp; OBRA &rsquo;90, &sect; 11703(c)(3).<br /> <br /> </div></div><br />