Required minimum distribution rules for retirement plans enacted. Unlimited gift tax exclusion for amount paid directly to a provider for an individual's medical expenses or school tuition. Effective for gifts made after 1981. The unlimited marital deduction is applicable to estates of decedents dying after December 31, 1981. Unlimited gift tax marital deduction for gifts between spouses.
Inherited property receives a stepped up basis.
Effective date of carryover basis rules deferred. Carryover basis rule to apply to property acquired from a decedent after December 31, 1979. Unification of gift and estate taxes and creation of only one channel of rates for both taxes. The code sections which repealed those exemptions are applicable to estates of decedents dying after, and gifts made after, December 31, 1976. Enactment of generation skipping tax on transfers in trust to beneficiaries two or more generations younger than the transferor.