# 26 U.S.C. § 2612: Taxable termination; taxable distribution; direct skip

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s2612>. Cite pinpoints as 26 U.S.C. § 2612(a)(1).

## § 2612(a) Taxable termination

**§ 2612(a)(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—

**§ 2612(a)(1)(A)** immediately after such termination, a non-skip person has an interest in such property, or

**§ 2612(a)(1)(B)** at no time after such termination may a distribution (including distributions on termination) be made from such trust to a skip person.

**§ 2612(a)(2) Certain partial terminations treated as taxable.** If, upon the termination of an interest in property held in trust by reason of the death of a lineal descendant of the transferor, a specified portion of the trust’s assets are distributed to 1 or more skip persons (or 1 or more trusts for the exclusive benefit of such persons), such termination shall constitute a taxable termination with respect to such portion of the trust property.

## § 2612(b) Taxable distribution

For purposes of this chapter, the term “taxable distribution” means any distribution from a trust to a skip person (other than a taxable termination or a direct skip).

## § 2612(c) Direct skip

For purposes of this chapter—

**§ 2612(c)(1) In general.** The term “direct skip” means a transfer subject to a tax imposed by chapter 11 or 12 of an interest in property to a skip person.

**§ 2612(c)(2) 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(f)(2) shall not apply.

## Regulations

- [Treas. Reg. § 26.2612-1](/26/reg/26.2612-1.md): Definitions. (interprets § 2612)

## Final rules

- [70 FR 41140](https://www.federalregister.gov/documents/2005/07/18/05-13799/predeceased-parent-rule) (2005): Predeceased Parent Rule
- [60 FR 66898](https://www.federalregister.gov/documents/1995/12/27/95-30873/generation-skipping-transfer-tax) (1995): Generation-Skipping Transfer Tax

## Leading cases

- [Peterson Marital Trust v. Commissioner, 102 T.C. 790 (1994)](https://www.courtlistener.com/opinion/4694943/peterson-marital-trust-v-commissioner/)

## Connections

Cites: § 2651 Generation assignment

Cited by: § 6166 Extension of time for payment of estate tax where estate consists largely of interest in closely held business

## Amendments

- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1883
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2719
- 1988-11-10: [Pub. L. 100-647](/26/act/100-647.md), 102 Stat. 3564
- 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 861