Page:United States Statutes at Large Volume 92 Part 3.djvu/303

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2935

2056(b) which a r e inconsistent with paragraph (3) or (4) of this 26 USC 2056. subsection shall not apply. "(6) DEATH OF BENEFICIARY BEFORE YOUNGEST CHILD REACHES

AGE 23.—Nothing in this subsection shall be treated as disqualifying an interest of a minor child in a trust solely because such interest will pass to another person if the child dies before the youngest child of the decedent attains age 23." (2) A G E 23 FOR TERMINABLE INTEREST RULE IN THE CASE OF

ORPHANS' EXCLUSION.—The second sentence of subsection (c) of section 2057 (relating to limitation in the case of life estate or 26 USC 2057. other terminable interest) is amended by striking out " 2 1 " and inserting in lieu thereof "23". (3) EFFECTIVE DATE.—The amendments made by this subsection 26 USC 2057 shall apply to the estates of decedents dying after December 31, note. 1976. (m) DISCLAIMER BY SURVIVING SPOUSE W H E R E INTEREST PASSES TO S U C H SPOUSE.—

(1) IN GENERAL.—Paragraph (4) of section 2518(b) (defining 26 USC 2518. qualified disclaimer) is amended to read as follows: "(4) as a result of such refusal, the interest passes without any direction on the part of the person making the disclaimer and passes either— "(A) to the spouse of the decedent, or "(B) to a person other than the person making the disclaimer." (2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 2518 shall apply to transfers creating an interest in the person note, disclaiming made after December 31, 1976. (n) AMENDMENTS RELATING TO T A X ON GENERATION-SKIPPING TRANSFERS.— (1) EFFECTIVE DATE OF GENERATION-SKIPPING TRANSFER PROVI-

SIONS.—Section 2006(c) of the Tax Reform Act of 1976 (relating to 26 USC 2601 effective date of generation-skipping transfer provisions) is note. ^ amended by striking out "April 30, 1976" each place it appears and inserting in lieu thereof " June 11, 1976". (2) CERTAIN POWERS OF INDEPENDENT TRUSTEES NOT TREATED AS

POWERS.—Subsection (e) of section 2613 (relating to definitions 26 USC 2613 for purposes of the tax on generation-skipping transfers) is amended to read as follows: "(e) CERTAIN POWERS N O T T A K E N INTO ACCOUNT.— "(1) LIMITED POWER TO APPOINT AMONG LINEAL DESCENDANTS OF

THE GRANTOR.—For purposes of this chapter, a n individual shall be treated as not having any power in a t r u s t if such individual does not have any present or future power in the t r u s t other than a power to dispose of the corpus of the t r u s t or the income therefrom to a beneficiary or a class of beneficiaries who are lineal descendants of the grantor assigned to a generation younger than the generation assignment of such individual. "(2) POWERS OF INDEPENDENT TRUSTEES.—

"(A) IN GENERAL.—For purposes of this chapter, a n individual shall be treated as not having any power in a t r u s t if such individual— "(i) is a trustee who has no interest in the trust, "(ii) is not a related or subordinate trustee, and "(ill) does not have any present or future power in the t r u s t other than a power to dispose of the corpus of the

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