§ 2611. Generation-skipping transfer defined

• (a) For purposes of this chapter, the term “generation-skipping transfer” means—
  • (1) a taxable distribution,
  • (2) a taxable termination, and
  • (3) a direct skip.
• (b) The term “generation-skipping transfer” does not include—
  • (1) any transfer which, if made inter vivos by an individual, would not be treated as a taxable gift by reason of section 2503(e) (relating to exclusion of certain transfers for educational or medical expenses), and
  • (2) any transfer to the extent—
    • (A) the property transferred was subject to a prior tax imposed under this chapter,
    • (B) the transferee in the prior transfer was assigned to the same generation as (or a lower generation than) the generation assignment of the transferee in this transfer, and
    • (C) such transfers do not have the effect of avoiding tax under this chapter with respect to any transfer.