I

103D CONGRESS

1ST SESSION H. R. 770

To establish for Certain Employees of International Organizations an Estate

Tax Credit Equivalent to the Limited Marital Deduction.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1993

Mr. GIBBONS introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To establish for Certain Employees of International Organizations an Estate Tax Credit Equivalent to the Limited

Marital Deduction.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. GENERAL RULE.—Subchapter C of

4 chapter 11 is amended by adding at the end thereof the

5 following new section:

6 ‘‘SEC. 2210. CREDIT EQUIVALENT TO LIMITED MARITAL DE7 DUCTION IN CASE OF CERTAIN EMPLOYEES

8 OF INTERNATIONAL ORGANIZATIONS.

9 ‘‘(a) GENERAL RULE.—In the case of a decedent to

10 whom this section applies, the tax determined under sec-
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1 tion 2001(b) or 2101(b) (whichever is applicable) shall be

2 reduced by the applicable marital transfer credit deter3 mined under subsection (c).

4 ‘‘(b) DECEDENTS TO WHOM SECTION APPLIES.—

5 This section shall apply to a decedent if—

6 ‘‘(1) as of the date of the decedent’s death—

7 ‘‘(A) both the decedent and the surviving

8 spouse of the decedent were not citizens of the

9 United States and not lawful permanent resi10 dents of the United States, and

11 ‘‘(B) either the decedent or the surviving

12 spouse of the decedent was a qualified inter13 national organization employee, and

14 ‘‘(2) the executor of the decedent’s estate

15 waives the benefits of section 2056(d)(2).

16 ‘‘(c) APPLICABLE MARITAL TRANSFER CREDIT.—

17 ‘‘(1) ESTATES TAXABLE UNDER SECTION

18 2001.—

19 ‘‘(A) IN GENERAL.—If the estate of the

20 decedent is taxable under section 2001, the ap21 plicable marital transfer credit is the excess

22 of—

23 ‘‘(i) a tentative tax computed under

24 section 2001(c) on the sum of the marital

25 transfer amount plus $600,000, over
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1 ‘‘(ii) a tentative tax computed under

2 section 2001(c) on $600,000.

3 If the amount of the adjusted taxable gifts of

4 the decedent exceeds $600,000, the amount of

5 such gifts shall be substituted for ‘$600,000’ in

6 clauses (i) and (ii).

7 ‘‘(B) LIMITATION ON MARITAL TRANSFER

8 AMOUNT.—The amount of the marital transfer

9 amount taken into account under subparagraph

10 (A) shall not exceed the lesser of—

11 ‘‘(i) $600,000, or

12 ‘‘(ii) the excess of the sum referred to

13 in section 2001(b)(1) over $600,000.

14 ‘‘(2) ESTATES TAXABLE UNDER SECTION

15 2101.—If the estate of the decedent is taxable under

16 section 2101, the applicable marital transfer credit

17 shall be determined under the principles of para18 graph (1) with the following modifications—

19 ‘‘(A) the $600,000 amount set forth in

20 subparagraph (B)(i) shall be reduced by the de21 duction equivalent of the unified credit, and

22 ‘‘(B) the deduction equivalent of the uni23 fied credit shall be substituted for ‘$600,000’

24 each place it appears in paragraph (1) other

25 than subparagraph (B)(i).
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1 ‘‘(d) SPOUSE BECOMES CITIZEN.—This section shall

2 not apply in any case in which paragraph (1) of section

3 2056(d) does not apply by reason of paragraph (4) of such

4 section.

5 ‘‘(e) OTHER DEFINITIONS.—For purposes of this

6 section—

7 ‘‘(1) QUALIFIED INTERNATIONAL ORGANIZA8 TION EMPLOYEE.—The term ‘qualified international

9 organization employee’ means any full-time employee

10 of an international organization whose principal

11 place of employment with such organization is in the

12 United States.

13 ‘‘(2) MARITAL TRANSFER AMOUNT.—The term

14 ‘marital transfer amount’ means the amount which

15 would have been allowable as a deduction under sec16 tion 2056 or 2106(a)(3) (whichever is applicable) if

17 section 2056 were applied without regard to sub18 section (d) thereof.

19 ‘‘(3) ADJUSTED TAXABLE GIFTS.—The term

20 ‘adjusted taxable gifts’ has the same meaning as

21 when used in section 2001 or 2101, whichever is ap22 plicable.

23 ‘‘(4) DEDUCTION EQUIVALENT OF UNIFIED

24 CREDIT.—The term ‘deduction equivalent of unified

25 credit’ means, with respect to any estate taxable
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1 under section 2101, the amount on which the ten2 tative tax determined under section 2001(c) would

3 equal the unified credit allowed under section

4 2102(c).’’

5 SEC. 2. CLERICAL AMENDMENT.—The table of sec6 tions for subchapter C of chapter 11 is amended by adding

7 at the end thereof the following new item:

‘‘Sec. 2210. Credit equivalent to limited marital deduction in case

of certain employees of international organizations.’’

8 SEC. 3. EFFECTIVE DATE.—The amendments made

9 by this section shall apply to the estates of decedents dying

10 after the date of the enactment of this Act.

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