,i #aac? ,,congress #b;d ,session ,h4 ,r4 #djfa ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #ad1 #bjad ,mr4 ,mc,dermott introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to re=m ! e/ate & gift tax4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,s5sible ,e/ate ,tax ,act ( #bjad4 #b4 ,modification ( e/ate tax exclusion & e/ate tax rates 7a7 ,exclusion am\nt 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #bjaj7;c77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #e1jjj1jjj & ins]t+ #a1jjj1jjj4 7#b7 ,inflation adju/m5t ,subp>agraph 7,b7 ( section #bjaj7;c77#c7 ( su* ,code is am5d$-- 7,a7 by /rik+ #bjaa 9 ! matt] prec$+ clause 7i7 & ins]t+ #bjad1 & 7,b7 by /rik+ #bjaj 9 clause 7ii7 & ins]t+ #bjjj4 7b7 ,e/ate tax rates 7#a7 ,9 g5]al ,! table conta9$ 9 subsection 7c7 ( section #bjja ( su* ,code is am5d$ by /rik+ ,ov] #a1jjj1jjj & all t foll[s & ins]t+ ! foll[+3 ,ov] #a1jjj1jjj b n ov] #a1bej1jjjcde1hjj1 plus #da p]c5t ( ! excess ( su* am\nt ov] #a1jjj1jjj4 ,ov] #a1bej1jjj b n ov] #a1ejj1jjjddh1cjj1 plus #dc p]c5t ( ! excess ( su* am\nt ov] #a1bej1jjj4 ,ov] #a1ejj1jjj b n ov] #e1jjj1jjjeee1hjj1 plus #de p]c5t ( ! excess ( su* am\nt ov] #a1ejj1jjj4 ,ov] #e1jjj1jjj b n ov] #aj1jjj1jjjb1acj1hjj1 plus #ej p]c5t ( ! excess ( su* am\nt ov] #e1jjj1jjj4 ,ov] #aj1jjj1jjj #d1fcj1hjj1 plus #ee p]c5t ( ! excess ( su* am\nt ov] #aj1jjj1jjj4 4 7#b7 ,adju/m5t = inflation ,subsection 7c7 ( section #bjja ( su* ,code is am5d$-- 7,a7 by ins]t+ ! foll[+ be=e ! table conta9$ !re93 7#a7 ,9 g5]al 1 & 7,b7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,inflation adju/m5t ,9 ! case ( any dec$5t dy+ 9 a cal5d> ye> aft] #bjad-- 7,a7 ea* m9imum & maximum doll> am\nt = ea* rate bracket 9 ! table 9 p>agraph 7#a7 %all be increas$ by an am\nt equal to-- 7i7 su* doll> am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = su* cal5d> ye>1 det]m9$ by sub/itut+ #bjjj = #aiib 9 subp>agraph 7,b7 !re(1 & 7,b7 ea* ( ! am\nts sett+ =? ! tax "u su* table %all be adju/$ to ! ext5t necess>y to reflect ! adju/m5ts 9 ! rate brackets made by subp>agraph 7,a74 ,if any increase det]m9$ "u subp>agraph 7,a7 is n a multiple ( #aj1jjj1 su* increase %all be r\nd$ to ! ne>e/ multiple ( #aj1jjj4 4 7c7 ,coord9ation ) gift tax ,to reflect decrease 9 applicable cr$it am\nt ,subsection 7g7 ( section #bjja ( su* ,code is am5d$ to read z foll[s3 7g7 ,modifications to gift tax calculation ,= purposes ( apply+ subsection 7b77#b7 ) respect to #a or m gifts-- 7#a7 ,modifications to reflect diff]5t tax rates ,! rates ( tax "u subsection 7c7 9 effect at ! dec$5t's dea? %all1 9 lieu ( ! rates ( tax 9 effect at ! "t ( su* gifts1 be us$ bo? to compute-- 7,a7 ! tax impos$ by *apt] #ab ) respect to su* gifts1 & 7,b7 ! cr$it all[$ aga9/ su* tax "u section #beje1 includ+ 9 comput+-- 7i7 ! am\nt det]m9$ "u section #beje7;a77#a71 & 7ii7 ! sum ( ! am\nts all[$ z a cr$it = all prec$+ p]iods "u section #beje7;a77#b74 7#b7 ,modification to reflect r$uc$ applicable cr$it am\nts ,! am\nt det]m9$ "u section #beje7;a77#a7 = ea* cal5d> ye> %all n exce$ ! e/ate's applicable cr$it am\nt "u section #bjaj7;c74 4 7d7 ,effective date ,except z o!rwise provid$ by 9 ?is subsection1 ! am5dm5ts made by ?is section %all apply to e/ates ( dec$5ts dy+1 g5]ation-skipp+ transf]s1 & gifts made1 aft] ,decemb] #ca1 #bjad4 #c4 ,re/oration ( cr$it = ,/ate transf] tax 7a7 ,9 g5]al ,section #bjaa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ subsection 7f74 7b7 ,repeal ( d$uction = /ate transf] taxes 7#a7 ,9 g5]al ,section #bjeh ( su* ,code is am5d$ by add+ at ! end ! foll[+3 7c7 ,t]m9ation ,?is section %all n apply to ! e/ates ( dec$5ts dy+ aft] ,decemb] #ca1 #bjad4 4 7#b7 ,con=m+ am5dm5t ,section #bajf7;a77#d7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new s5t5ce3 ,?is p>agraph %all n apply to ! e/ates ( dec$5ts dy+ aft] ,decemb] #ca1 #bjad44 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to e/ates ( dec$5ts dy+1 & gifts made1 aft] ,decemb] #ca1 #bjad4 #d4 ,valuation rules = c]ta9 transf]s ( nonbus9ess assets2 limitation on m9ority disc\nts 7a7 ,9 g5]al ,section #bjca ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7d7 z subsection 7f7 & by ins]t+ aft] subsection 7c7 ! foll[+ new subsections3 7d7 ,valuation rules = c]ta9 transf]s ( nonbus9ess assets ,= purposes ( ?is *apt] & *apt] #ab-- 7#a7 ,9 g5]al ,9 ! case ( ! transf] ( any int]e/ 9 an entity o!r ?an an int]e/ :i* is actively trad$ 7)9 ! mean+ ( section #ajib7-- 7,a7 ! value ( any nonbus9ess assets held by ! entity %all be det]m9$ z if ! transf]or _h transf]r$ su* assets directly to ! transf]ee 7& no valuation disc\nt %all be all[$ ) respect to su* nonbus9ess assets71 & 7,b7 ! nonbus9ess assets %all n be tak5 into acc\nt 9 det]m9+ ! value ( ! int]e/ 9 ! entity4 7#b7 ,nonbus9ess assets ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m nonbus9ess asset means any asset :i* is n us$ 9 ! active conduct ( #a or m trades or bus9esses4 7,b7 ,exception = c]ta9 passive assets ,except z provid$ 9 subp>agraph 7,c71 a passive asset %all n be treat$ = purposes ( subp>agraph 7,a7 z us$ 9 ! active conduct ( a trade or bus9ess unless-- 7i7 ! asset is prop]ty describ$ 9 p>agraph 7#a7 or 7#d7 ( section #abba7;a7 or is a h$ge ) respect to su* prop]ty1 or 7ii7 ! asset is real prop]ty us$ 9 ! active conduct ( #a or m real prop]ty trades or bus9esses 7)9 ! mean+ ( section #dfi7;c77#g77;,c77 9 :i* ! transf]or mat]ially p>ticipates & ) respect to :i* ! transf]or meets ! requirem5ts ( section #dfi7;c77#g77;,b77ii74 ,= purposes ( clause 7ii71 mat]ial p>ticipation %all be det]m9$ "u ! rules ( section #dfi7;h71 except t section #dfi7;h77#c7 %all be appli$ )\t reg>d to ! limitation to f>m+ activity4 7,c7 ,exception = work+ capital ,any asset 7includ+ a passive asset7 :i* is held z a "p ( ! reasonably requir$ work+ capital ne$s ( a trade or bus9ess %all be treat$ z us$ 9 ! active conduct ( a trade or bus9ess4 7#c7 ,passive asset ,= purposes ( ?is subsection1 ! t]m passive asset means any-- 7,a7 ca% or ca% equival5ts1 7,b7 except to ! ext5t provid$ by ! ,secret>y1 /ock 9 a corporation or any o!r equity1 pr(its1 or capital int]e/ 9 any entity1 7,c7 evid5ce ( indebt$ness1 option1 =w>d or futures contract1 notional pr9cipal contract1 or d]ivative1 7,d7 asset describ$ 9 clause 7iii71 7iv71 or 7v7 ( section #cea7;e77#a77;,b71 7,e7 annuity1 7,f7 real prop]ty us$ 9 #a or m real prop]ty trades or bus9esses 7z def9$ 9 section #dfi7;c77#g77;,c771 7,g7 asset 7o!r ?an a pat5t1 tradem>k1 or copyright7 :i* produces royalty income1 7,h7 commodity1 7,i7 collectible 7)9 ! mean+ ( section #dja7m771 or 7,j7 any o!r asset specifi$ 9 regulations prescrib$ by ! ,secret>y4 7#d7 ,look-?ru rules 7,a7 ,9 g5]al ,if a nonbus9ess asset ( an entity consi/s ( a #aj-p]c5t int]e/ 9 any o!r entity1 ?is subsection %all be appli$ by disreg>d+ ! #aj-p]c5t int]e/ & by treat+ ! entity z hold+ directly its ratable %>e ( ! assets ( ! o!r entity4 ,?is subp>agraph %all be appli$ successively to any #aj-p]c5t int]e/ ( su* o!r entity 9 any o!r entity4 7,b7 #aj-p]c5t int]e/ ,! t]m #aj-p]c5t int]e/ means-- 7i7 9 ! case ( an int]e/ 9 a corporation1 own]%ip ( at lea/ #aj p]c5t 7by vote or value7 ( ! /ock 9 su* corporation1 7ii7 9 ! case ( an int]e/ 9 a p>tn]%ip1 own]%ip ( at lea/ #aj p]c5t ( ! capital or pr(its int]e/ 9 ! p>tn]%ip1 & 7iii7 9 any o!r case1 own]%ip ( at lea/ #aj p]c5t ( ! b5eficial int]e/s 9 ! entity4 7,c7 ,exception = actively trad$ int]e/s ,subp>agraph 7,a7 %all n apply to any nonbus9ess asset :i* consi/s ( an int]e/ :i* is actively trad$ 7)9 ! mean+ ( section #ajib74 7#e7 ,coord9ation ) subsection 7b7 ,subsection 7b7 %all apply aft] ! application ( ?is subsection4 7e7 ,limitation on m9ority disc\nts ,= purposes ( ?is *apt] & *apt] #ab1 9 ! case ( ! transf] ( any int]e/ 9 an entity o!r ?an an int]e/ :i* is actively trad$ 7)9 ! mean+ ( section #ajib71 no disc\nt %all be all[$ by reason ( ! fact t ! transf]ee does n h control ( su* entity if ! transf]ee & memb]s ( ! family 7z def9$ 9 section #bjcb;,a7e77#b77 ( ! transf]ee h control ( su* entity 7det]m9$ imm$iately aft] su* transf]74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to transf]s aft] ! date ( ! enactm5t ( ?is ,act4 #e4 ,consi/5t basis report+ betwe5 e/ate & p]son acquir+ prop]ty f dec$5t 7a7 ,consi/5t use ( basis 7#a7 ,prop]ty acquir$ f a dec$5t ,section #ajad ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,basis mu/ be consi/5t ) e/ate tax return 7#a7 ,9 g5]al ,= purposes ( ?is section1 ! value us$ to det]m9e ! basis ( any int]e/ 9 prop]ty 9 ! h&s ( ! p]son acquir+ su* prop]ty %all n exce$ ! value ( su* int]e/ z f9ally det]m9$ = purposes ( *apt] #aa4 7#b7 ,special rule :]e no f9al det]m9ation ,9 any case 9 :i* ! f9al value ( prop]ty has n be5 det]m9$ "u *apt] #aa & !re has be5 a /atem5t furni%$ "u section #fjce7;a71 ! value us$ to det]m9e ! basis ( any int]e/ 9 prop]ty 9 ! h&s ( ! p]son acquir+ su* prop]ty %all n exce$ ! am\nt report$ on any /atem5t furni%$ "u section #fjce7;a74 7#c7 ,regulations ,! ,secret>y may by regulations provide exceptions to ! application ( ?is subsection4 4 7#b7 ,prop]ty acquir$ by gifts & transf]s 9 tru/ ,section #ajae ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,basis mu/ be consi/5t gift tax return 7#a7 ,9 g5]al ,= purposes ( ?is section1 ! value us$ to det]m9e ! basis ( any int]e/ 9 prop]ty 9 ! h&s ( ! p]son acquir+ su* prop]ty %all n exce$ ! value ( su* int]e/ z f9ally det]m9$ = purposes ( *apt] #ab4 7#b7 ,special rule :]e no f9al det]m9ation ,9 any case 9 :i* ! f9al value ( prop]ty has n be5 det]m9$ "u *apt] #ab & !re has be5 a /atem5t furni%$ "u section #fjce7;b71 ! value us$ to det]m9e ! basis ( any int]e/ 9 prop]ty 9 ! h&s ( ! p]son acquir+ su* prop]ty %all n exce$ ! am\nt report$ on any /atem5t furni%$ "u section #fjce7;b74 7#c7 ,regulations ,! ,secret>y may by regulations provide exceptions to ! application ( ?is subsection4 4 7b7 ,in=mation report+ 7#a7 ,9 g5]al ,subp>t ,a ( "p ,,iii ( sub*apt] ,a ( *apt] #fa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #fjcd;,a ! foll[+ new section3 #fjce4 ,basis in=mation to p]sons acquir+ prop]ty f dec$5t or by gift 7a7 ,in=mation ) respect to prop]ty acquir$ f dec$5ts 7#a7 ,9 g5]al ,! executor ( any e/ate requir$ to file a return "u section #fjah7;a7 %all furni% to ! ,secret>y & to ea* p]son acquir+ any int]e/ 9 prop]ty includ$ 9 ! dec$5t's gross e/ate = ,f$]al e/ate tax purposes a /atem5t id5tify+ ! value ( ea* int]e/ 9 su* prop]ty z report$ on su* return & su* o!r in=mation ) respect to su* int]e/ z ! ,secret>y may prescribe4 7#b7 ,/atem5ts by b5efici>ies ,ea* p]son requir$ to file a return "u section #fjah7;b7 %all furni% to ! ,secret>y & to ea* o!r p]son :o holds a legal or b5eficial int]e/ 9 ! prop]ty to :i* su* return relates a /atem5t id5tify+ ! in=mation describ$ 9 p>agraph 7#a74 7#c7 ,"t = furni%+ /atem5t 7,a7 ,9 g5]al ,ea* /atem5t requir$ to be furni%$ "u p>agraph 7#a7 or 7#b7 %all be furni%$ at su* "t z ! ,secret>y may prescribe1 b 9 no case at a "t lat] ?an ! e>li] (-- 7i7 ! date :i* is #cj days aft] ! date on :i* ! return "u section #fjah 0 requir$ to be fil$ 7includ+ ext5sions1 if any71 or 7ii7 ! date :i* is #cj days aft] ! date su* return is fil$4 7,b7 ,adju/m5ts ,9 any case 9 :i* !re is an adju/m5t to ! in=mation requir$ to be includ$ on a /atem5t fil$ "u p>agraph 7#a7 or 7#b7 aft] su* /atem5t has be5 fil$1 a supplem5tal /atem5t "u su* p>agraph %all be fil$ n lat] ?an ! date :i* is #cj days aft] su* adju/m5t is made4 7b7 ,in=mation ) respect to prop]ty acquir$ by gift 7#a7 ,9 g5]al ,ea* p]son mak+ a transf] by gift :o is requir$ to file a return "u section #fjai ) respect to su* transf] %all furni% to ! ,secret>y & to ea* p]son acquir+ any int]e/ 9 prop]ty by reason ( su* transf] a /atem5t id5tify+ ! value ( ea* int]e/ 9 su* prop]ty z report$ on su* return & su* o!r in=mation ) respect to su* int]e/ z ! ,secret>y may prescribe4 7#b7 ,"t = furni%+ /atem5t 7,a7 ,9 g5]al ,ea* /atem5t requir$ to be furni%$ "u p>agraph 7#a7 %all be furni%$ at su* "t z ! ,secret>y may prescribe1 b 9 no case at a "t lat] ?an ! e>li] (-- 7i7 ! date :i* is #cj days aft] ! date on :i* ! return "u section #fjai 0 requir$ to be fil$ 7includ+ ext5sions1 if any71 or 7ii7 ! date :i* is #cj days aft] ! date su* return is fil$4 7,b7 ,adju/m5ts ,9 any case 9 :i* !re is an adju/m5t to ! in=mation requir$ to be includ$ on a /atem5t fil$ "u p>agraph 7#a7 aft] su* /atem5t has be5 fil$1 a supplem5tal /atem5t "u su* p>agraph %all be fil$ n lat] ?an ! date :i* is #cj days aft] su* adju/m5t is made4 7c7 ,regulations ,! ,secret>y %all prescribe su* regulations z necess>y to c>ry out ?is section1 includ+ regulations relat+ to-- 7#a7 ! application ( ?is section to prop]ty ) reg>d to :i* no e/ate or gift tax return is requir$ to be fil$1 & 7#b7 situations 9 :i* ! surviv+ jo9t t5ant or o!r recipi5t may h bett] in=mation ?an ! executor reg>d+ ! basis or fair m>ket value ( ! prop]ty4 4 7#b7 ,p5alty = failure to file 7,a7 ,return ,section #fgbd7;d77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( subp>agraph 7,b71 by /rik+ ! p]iod at ! end ( subp>agraph 7,c7 & ins]t+ 1 &1 & by ins]t+ aft] subp>agraph 7,c7 ! foll[+ new subp>agraph3 7,d7 any /atem5t requir$ to be fil$ ) ! ,secret>y "u section #fjce4 4 7,b7 ,/atem5t ,section #fgbd7;d77#b7 ( su* ,code is am5d$ by /rik+ or at ! end ( subp>agraph 7,,gg71 by /rik+ ! p]iod at ! end ( subp>agraph 7,,hh7 & ins]t+ 1 or1 & by ins]t+ aft] subp>agraph 7,,hh7 ! foll[+ new subp>agraph3 7,,ii7 section #fjce 7o!r ?an a /atem5t describ$ 9 p>agraph 7#a77;,d774 4 7#c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,a ( "p ,,iii ( sub*apt] ,a ( *apt] #fa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #fjcd;,a ! foll[+ new item3 ,sec4 #fjce4 ,basis in=mation to p]sons acquir+ prop]ty f dec$5t or by gift4 4 7c7 ,p5alty = inconsi/5t report+ 7#a7 ,9 g5]al ,subsection 7b7 ( section #fffb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] p>agraph 7#g7 ! foll[+ new p>agraph3 7#h7 ,any inconsi/5t e/ate or gift basis4 4 7#b7 ,inconsi/5t basis report+ ,section #fffb ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subsection3 7k7 ,inconsi/5t e/ate or gift basis report+ ,= purposes ( ?is section1 ! t]m inconsi/5t e/ate or gift basis means ! portion ( ! und]/atem5t :i* is attributable to-- 7#a7 9 ! case ( prop]ty acquir$ f a dec$5t1 a basis det]m9ation ) respect to su* prop]ty :i* is n consi/5t ) ! value ( su* prop]ty z det]m9$ "u section #ajad7;f71 & 7#b7 9 ! case ( prop]ty acquir$ by gift1 a basis det]m9ation ) respect to su* prop]ty :i* is n consi/5t ) ! value ( su* prop]ty z det]m9$ "u section #ajae7;f74 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to transf]s = :i* returns are fil$ aft] ! date ( ! enactm5t ( ?is ,act4 #f4 ,requir$ m9imum #aj-ye> t]m1 etc41 = grantor reta9$ annuity tru/s 7a7 ,9 g5]al ,subsection 7b7 ( section #bgjb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by r$esignat+ p>agraphs 7#a71 7#b71 & 7#c7 z subp>agraphs 7,a71 7,b71 & 7,c71 respectively1 & by mov+ su* subp>agraphs 7z s r$esignat$7 #b ems to ! "r2 7#b7 by /rik+ ,= purposes ( & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,= purposes ( 2 7#c7 by /rik+ p>agraph 7#a7 or 7#b7 9 p>agraph 7#a77;,c7 7z s r$esignat$7 & ins]t+ subp>agraph 7,a7 or 7,b72 & 7#d7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,additional requirem5ts ) respect to grantor reta9$ annuities ,= purposes ( subsection 7a71 9 ! case ( an int]e/ describ$ 9 p>agraph 7#a77;,a7 7det]m9$ )\t reg>d to ?is p>agraph7 :i* is reta9$ by ! transf]or1 su* int]e/ %all be treat$ z describ$ 9 su* p>agraph only if-- 7,a7 ! "r to receive ! fix$ am\nts ref]r$ to 9 su* p>agraph is = a t]m ( n less ?an #aj ye>s1 7,b7 su* fix$ am\nts1 :5 det]m9$ on an annual basis1 d n decrease relative to any prior ye> dur+ ! fir/ #aj ye>s ( ! t]m ref]r$ to 9 subp>agraph 7,a71 & 7,c7 ! rema9d] int]e/ has a value great] ?an z]o det]m9$ z ( ! "t ( ! transf]4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to transf]s made aft] ! date ( ! enactm5t ( ?is ,act4 #g4 ,limitation on ,,g/ exemption ( p]petual dyna/y tru/s 7a7 ,9 g5]al ,section #bfdb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7h7 ,expiration ( ,,g/ exemption #ij ye>s aft] e/abli%m5t ( tru/ 7#a7 ,9 g5]al ,9 ! case ( any g5]ation-skipp+ transf] made f a tru/ aft] ! date :i* is #ij ye>s aft] ! date on :i* su* tru/ is creat$1 ! inclusion ratio ) respect to any prop]ty transf]r$ 9 su* transf] %all be #a4 7#b7 ,special rules ,= purposes ( ?is subsection-- 7,a7 ,date ( creation ( c]ta9 deem$ sep>ate tru/s ,9 ! case ( any portion ( a tru/ :i* is treat$ z a sep>ate tru/ "u section #bfed7;b77#a71 su* sep>ate tru/ %all be treat$ z creat$ on ! date ( ! fir/ transf] describ$ 9 su* section ) respect to su* sep>ate tru/4 7,b7 ,date ( creation ( p\r-ov] tru/s ,9 ! case ( any g5]ation-skipp+ transf] ( prop]ty :i* involves ! transf] ( prop]ty f #a tru/ to ano!r tru/1 ! date ( ! creation ( ! transf]ee tru/ %all be treat$ z be+ ! e>li] (-- 7i7 ! date ( ! creation ( su* transf]ee tru/1 or 7ii7 ! date ( ! creation ( ! transf]or tru/4 ,9 ! case ( multiple transf]s to :i* ! prec$+ s5t5ce applies1 ! date ( ! creation ( ! transf]or tru/ %all be det]m9$ "u ! prec$+ s5t5ce be=e ! application ( ! prec$+ s5t5ce to det]m9e ! date ( ! creation ( ! transf]ee tru/4 7,c7 ,exception = c]ta9 transf]s = education & m$ical exp5ses ,subp>agraph 7,b7 %all n apply to ! transf] ( prop]ty f #a tru/ to ano!r tru/ if-- 7i7 su* transf] is describ$ 9 section #bfdb7;c77#b71 & 7ii7 ! individual ref]r$ to 9 su* section ) respect to ! transf]ee tru/ 0 also a b5efici>y ( ! transf]or tru/4 7#c7 ,regulations ,! ,secret>y may prescribe su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ?is subsection4 4 7b7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made ?is section %all apply to-- 7,a7 tru/s creat$ aft] ! date ( ! enactm5t ( ?is ,act1 & 7,b7 g5]ation-skipp+ transf]s made f tru/s creat$ on or be=e su* date1 b only to ! ext5t su* transf] is made out ( corpus add$ to ! tru/ aft] su* date 7or out ( income attributable to corpus s add$74 7#b7 ,det]m9ation ( date ( creation ,= purposes ( ?is subsection1 ! rules ( sections #bfdb7;h77#b7 7z add$ by ?is section7 & #bfed7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf %all apply = purposes ( det]m9+ ! date ( ! creation ( any tru/4 7#c7 ,exceptions ,! ,secret>y ( ! ,treasury1 or 8 designee1 %all issue regulations or o!r guidance :i* provide exceptions to ! application ( ! am5dm5ts made by ?is section :i* are sub/antially simil> to ! relevant exceptions "u p>agraph 7#b7 ( section #adcc7;b7 ( ! ,tax ,re=m ,act ( #aihf4