26 USC 2612 - Taxable termination; taxable distribution; direct skip

U.S Code last checked for updates: Aug 17, 2025

§ 2612.

Taxable termination; taxable distribution; direct skip

(a)

Taxable termination

(1)

General rule

For purposes of this chapter, the term “taxable termination” means the termination (by death, lapse of time, release of power, or otherwise) of an interest in property held in a trust unless—

(A)

immediately after such termination, a non-skip person has an interest in such property, or

(B)

at no time after such termination may a distribution (including distributions on termination) be made from such trust to a skip person.

(2)

Certain partial terminations treated as taxable

(b)

Taxable distribution

(c)

Direct skip

For purposes of this chapter—

(1)

In general

(2)

Look-thru rules not to apply

(Added Pub. L. 94–455, title XX, § 2006(a), Oct. 4, 1976, 90 Stat. 1883; amended Pub. L. 99–514, title XIV, § 1431(a), Oct. 22, 1986, 100 Stat. 2719; Pub. L. 100–647, title I, § 1014(g)(5)(B), (7), (15), Nov. 10, 1988, 102 Stat. 3564–3566; Pub. L. 105–34, title V, § 511(b), Aug. 5, 1997, 111 Stat. 861.)

cite as: 26 USC 2612