92 STAT. 2934
PUBLIC LAW 95-600—NOV. 6, 1978 "(C) after December 31, 1976, a joint interest of such husband and wife in such property (or in property the basis of which in whole or in part reflects the basis of such property) was created. then paragraph (1) of subsection (b) shall apply to the joint interest described in subparagraph (C) only if an election is made under subsection (d). "(2) SPECIAL RULES.—For purposes of applying subsection (d) to property described in paragraph (1) of this subsection— "(A) if the creation described in paragraph (1)(C) occurs after December 31, 1979, the election may be made only with respect to the calendar quarter in which such creation occurs, and "(B) the creation of the joint interest described in paragraphs (4) and (5) of subsection (d) is the creation of the joint interest described in paragraph (1)(A) of this subsection." (1) AMENDMENTS RELATING TO ORPHANS' EXCLUSION.— (1) ORPHANS' EXCLUSION WHERE THERE IS A TRUST FOR MINOR
26 USC 2057.
CHILDREN.—Section 2057 (relating to bequests, etc., to certain minor children) is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection: "(d) QUALIFIED MINORS' TRUST.—
"(1) IN GENERAL.—For purposes of subsection (a), the interest of a minor child in a qualified minors' trust shall be treated as an interest in property which passes or has passed from the decedent to such child. "(2) QUALIFIED MINORS' TRUST.—For purposes of paragraph (1), the term 'qualified minors' trust' means a trust— "(A) except as provided in subparagraph (D), all of the beneficiaries of which are minor children of the decedent, "(B) the corpus of which is property which psisses or has passed from the decedent to such trust, "(C) except as provided in paragraph (3), all distributions from which to the beneficiaries of the trust before the termination of their interests will be pro rata, "(D) on the death of any beneficiary of which before the termination of the trust, the beneficiary's pro rata share of the corpus and accumulated income remains in the trust for the benefit of the minor children of the decedent who survive the beneficiary or vests in any person, and "(E) on the termination of which, each beneficiary will receive a pro rata share of the corpus and accumulated income. "(3) CERTAIN DISPROPORTIONATE DISTRIBUTIONS PERMITTED.—A
trust shall not be treated as failing to meet the requirements of paragraph (2)(C) solely by reason of the fact that the governing instrument of the trust permits the making of disproportionate distributions which are limited by an ascertainable standard relating to the health, education, support, or maintenance of the beneficiaries. "(4) TRUSTEE MAY ACCUMULATE INCOME.—A trust which otherwise qualifies as a qualified minors' trust shall not be disqualified solely by reason of the fact that the trustee has power to accumulate income. "(5) COORDINATION WITH SUBSECTION (C).—In applying subsec-
tion (c) to a qualified minors' trust, those provisions of section
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