Page:United States Statutes at Large Volume 102 Part 4.djvu/702

 102 STAT. 3672

PUBLIC LAW 100-647—NOV. 10, 1988

trust (or such trust ceases to meet the requirements of subsection (a)(3)), the tax imposed by paragraph (1) shall apply as if the surviving spouse died on the date on which such person became such a trustee or the date of such cessation, as the case may be. "(4) DUE DATE.—The estate tax imposed by paragraph (1) shall be due and payable on the 15th day of the 4th month following the calendar year in which the taxable event occurs. "(5) LiABiuTY FOR TAX.—Each trustee shall be personally liable for the amount of the tax imposed by paragraph (1). Rules similar to the rules of section 2204 shall apply for purposes of the preceding sentence. "(6) TREATMENT OF TAX.—For purposes of section 2056(d), any tax paid under paragraph (1) shall be treated as a tax paid under section 2001 with respect to the estate of the decedent. "(7) LIEN FOR TAX.—For purposes of section 6324, any tax imposed by paragraph (1) shall be treated as an estate tax imposed under this chapter with respect to a decedent dying on the date of the taxable event (and the property involved shall be treated as the gross estate of such decedent). "(8) TAXABLE EVENT.—The term 'taxable event' means the event resulting in tax being imposed under paragraph (1). "(c) DEFINITIONS.—For purposes of this section— "(1) PROPERTY INCLUDES INTEREST THEREIN.—The term 'property' includes an interest in property. "(2) INCOME.—The term 'income has the meaning given to such term by section 6430t)). "(d) ELECTION.—An election under this section with respect to any trust shall be made by the executor on the return of the tax imposed by section 2001. Such an election, once made, shall be irrevocable." (3) CLERICAL AMENDMENT.—The table of sections for part IV of subchapter A of chapter 1 of the 1986 Code is amended by inserting after the item relating to section 2056 the following new item: "Sec. 2056A. Qualified domestic trusts."

(b) GIFT TAX.—Section 2523 of the 1986 Code is amended by adding at the end thereof the following new subsection: "(i) DISALLOWANCE OF MARITAL DEDUCTION WHERE SPOUSE NOT

CITIZEN.—If the spouse of the donor is not a citizen of the United States— "(1) no deduction shall be allowed under this section, "(2) section 2503(b) shall be applied with respect to gifts made by the donor to such spouse by substituting '$100,000' for '$10,000', and "(3) the principles of sections 2515 and 2515A (as such sections were in effect before their repeal by the Economic Recovery Tax Act of 1981) shall apply, except that the provisions of such section 2515 providing for an election shall not apply." (c) ESTATES OF NONRESIDENTS WHO ARE NOT CITIZENS BUT HAVE CITIZENS AS SPOUSES.—Subsection (a) of section 2106 of the 1986

Code is amended by adding at the end thereof the following new paragraph: "(3) MARITAL DEDUCTION ALLOWED WHERE SPOUSE IS CITIZEN.—

The amount which would be deductible with respect to property situated in the United States at the time of the decedent's death under the principles of section 2056." (d) EFFECTIVE DATE.—

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