PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 85 (1) RECOGNITION OF GAIN ON TRANSFERS TO NON- RESIDENTS.— (A) Subsection (a) of section 684 is amended by 26 USC 684. inserting "or to a nonresident alien" after "or trust". (B) Subsection (b) of section 684 is amended to read as follows: " (b) EXCEPTIONS.— "(1) TRANSFERS TO CERTAIN TRUSTS.— Subsection (a) shall not apply to a transfer to a trust by a United States person to the extent that any United States person is treated as the owner of such trust under section 671. "(2) LIFETIME TRANSFERS TO NONRESIDENT ALIENS. —Subsection (a) shall not apply to a lifetime transfer to a nonresident alien.". (C) The section heading for section 684 is amended by inserting "AND NONRESIDENT ALIENS" after "ESTATES". (D) The item relating to section 684 in the table of sections for subpart F of part I of subchapter J of chapter 1 is amended by inserting "and nonresident aliens" after "estates". (2) CAPITAL GAIN TREATMENT FOR INHERITED ART WORK OR SIMILAR PROPERTY. — (A) IN GENERAL. — Subparagraph (C) of section 1221(a)(3) (defining capital asset) is amended by inserting "(other than by reason of section 1022)" after "is determined". (B) COORDINATION WITH SECTION 170. — Paragraph (1) of section 170(e) (relating to certain contributions of ordinary income and capital gain property) is amended by adding at the end the following: "For purposes of this paragraph, the determination of whether property is a capital asset shall be made without regard to the exception contained in section 1221(a)(3)(C) for basis determined under section 1022.". (3) DEFINITION OF EXECUTOR.— Section 7701(a) (relating to definitions) is amended by adding at the end the following: "(47) EXECUTOR. —The term 'executor' means the executor or administrator of the decedent, or, if there is no executor or administrator appointed, qualified, and acting within the United States, then any person in actual or constructive possession of any property of the decedent.". (4) CERTAIN TRUSTS.— Subparagraph (A) of section 4947(a)(2) is amended by inserting "642(c)," after "170(f)(2)(B),". (5) OTHER AMENDMENTS. — (A) Section 1246 is amended by striking subsection (e). (B) Subsection (e) of section 1291 is amended— (i) by striking "(e),"; and (ii) by striking "; except that" and all that follows and inserting a period. (C) Section 1296 is amended by striking subsection (i).