Page:United States Statutes at Large Volume 102 Part 4.djvu/595

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3565

"(3) LOOK-THRU RULES NOT TO APPLY.—Solely for purposes of determining whether any transfer to a trust is a direct skip, the rules of section 2651(e)(2) shall not apply." (6) Subsection (c) of section 2652 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(3) CERTAIN SUPPORT OBLIGATIONS DISREGARDED.—The fact Gifts and that income or corpus of the trust may be used to satisfy an property, obligation of support arising under State law shall be disregarded in determining whether a person has an interest in the trust, if— "(A) such use is discretionary, or "(B) such use is pursuant to the provisions of any State law substantially equivalent to the Uniform Gifts to Minors Act." (7) Paragraph (2) of section 2612(c) of the 1986 Code is amended by adding at the end thereof the following new sentence: "If any transfer of property to a trust would be a direct skip but for this paragraph, any generation assignment under this paragraph shall apply also for purposes of applying this chapter to transfers from the portion of the trust attributable to such property." (8) Paragraph (2) of section 2652(c) of the 1986 Code is amended— (A) by striking out "NOMINAL INTERESTS" in the paragraph heading and inserting in lieu thereof "INTERESTS", and (B) by striking out "the tax" and inserting in lieu thereof "any tax". (9) Paragraph (1) of section 2652(a) of the 1986 Code is amended— (A) by striking out "a transfer of a kind" each place it appears and inserting in lieu thereof "any property", and (B) by adding at the end thereof the following new sentence: "An individual shall be treated as transferring any property with respect to which such individual is the transferor." (10) Section 2663-of the 1986 Code is amended by striking out "and" at the end of paragraph (1), by striking out the period at the end of paragraph (2) and inserting in lieu thereof ", and", and by adding at the end thereof the following new paragraph: "(3) regulations providing for such adjustments as may be necessary to the application of this chapter in the case of any arrangement which, although not a trust, is treated as a trust under section 2652(b)." (11) Paragraph (3) of section 2651(e) of the 1986 Code is amended to read as follows: "(3) TREATMENT OF CERTAIN CHARITABLE ORGANIZATIONS AND GOVERNMENTAL ENTmES.—Any—

"(A) organization described in section 511(a)(2), "(B) charitable trust described in section 511(b)(2), and "(C) governmental entity, shall be assigned to the transferor's generation." (12) Paragraph (2) of section 2654(a) of the 1986 Code is amended— (A) by striking out "any increase" and inserting in lieu thereof "any increase or decrease", and

�