90 STAT. 1890
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PUBLIC LAW 94-455—OCT. 4, 1976 (B) in the case of a decedent dying before January 1, 1982, pursuant to a will (or revocable trust) which was in existence on April 30, 1976, and was not amended at any time after that date in any respect which will result in the creation of, or increasing the amount of, any generation-skipping transfer. For purposes of subparagraph (B), if the decedent on April 30, 1976, was under a mental disability to change the disposition of his property, the period set forth in such subparagraph shall not expire before the date which is 2 years after the date on which he first regains his competence to dispose of such property. (3) TRUST EQUIVALENTS.—For purposes of paragraph (2), in
26 USC 2057. Ante, p. 1846.
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the case of a trust equivalent within the meaning of subsection (d) of section 2611 of the Internal Revenue Code of 1954, the provisions of such subsection (d) shall apply. SEC. 2007. ORPHANS' EXCLUSION. (a) GENERAL RULE.—Part IV of subchapter A of chapter 11 (relating to taxable estate) is amended by adding at the end thereof the following new section: "SEC. 2057. BEQUESTS, ETC., TO CERTAIN MINOR CHILDREN. "(a) ALLOWANCE OF DEDUCTION.—For purposes of the tax imposed by section 2001, if— "(1) the decedent does not have a surviving spouse, and " (2) the decedent is survived by a minor child who, immediately after the death of the decedent, has no known parent, then the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the value of any interest in property which passes or has passed from the decedent to such child, but only to the extent that such interest is included in determining the value of the gross estate. "(b) LIMITATION.—The aggregate amount of the deductions allowed under this section (computed without regard to this subsection) with respect to interests in property passing to any minor child shall not exceed an amount equal to $5,000 multiplied by the excess of 21 over the age (in years) which such child has attained on the date of the decedent's death. "(c) LIMITATION IN THE CASE OF LIFE ESTATE O OTHER TERMINABLE R
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Post, p. 1894.
INTEREST.—A deduction shall be allowed under this section with respect to any interest in property passing to a minor child only to the extent that a deduction would have been allowable under section 2056(b) if such interest had passed to a surviving spouse of the decedent. For purposes of this subsection, an interest shall not be treated as terminable solely because the property will pass to another person if the child dies before the youngest child of the decedent attains age 21. "(d) DEFINITIONS.—For purposes of this section— "(1) MINOR CHILD.—The term 'minor child' means any child of the decedent who has not attained the age of 21 before the date of the decedent's death. "(2) ADOPTED CHILDREN.—A relationship by legal adoption shall be treated as replacing a relationship by blood. "(3) PROPERTY PASSING FROM THE DECEDENT.—The determination of whether an interest in property passes from the decedent to any person shall be made in accordance with section 2056(d)." (b) CLERICAL AMENDMENT.—The table of sections for part IV of
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