HR 1105 RDS 
(b) TREATMENT
OF
CERTAIN
TRANSFERS
IN 
TRUST.—Section 2511 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subsection: 
‘‘(c) TREATMENT
OF
CERTAIN
TRANSFERS
IN 
TRUST.—Notwithstanding any other provision of this sec-
tion and except as provided in regulations, a transfer in 
trust shall be treated as a taxable gift under section 2503, 
unless the trust is treated as wholly owned by the donor 
or the donor’s spouse under subpart E of part I of sub-
chapter J of chapter 1.’’. 
(c) LIFETIME GIFT EXEMPTION.— 
(1) IN
GENERAL.—Paragraph (1) of section 
2505(a) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(1) the amount of the tentative tax which 
would be determined under the rate schedule set 
forth in section 2502(a)(2) if the amount with re-
spect to which such tentative tax is to be computed 
were $5,000,000, reduced by’’. 
(2) INFLATION ADJUSTMENT.—Section 2505 of 
such Code is amended by adding at the end the fol-
lowing new subsection: 
‘‘(d) INFLATION ADJUSTMENT.— 
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HR 1105 RDS 
‘‘(1) IN GENERAL.—In the case of any calendar 
year after 2011, the dollar amount in subsection 
(a)(1) shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year by substituting ‘calendar year 2010’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under paragraph (1) is not a multiple of $10,000, 
such amount shall be rounded to the nearest mul-
tiple of $10,000.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The heading for section 2505 of such Code 
is amended by striking ‘‘UNIFIED’’. 
(2) The item in the table of sections for sub-
chapter A of chapter 12 of such Code relating to 
section 2505 is amended to read as follows: 
‘‘Sec. 2505. Credit against gift tax.’’. 
(3) Section 2801(a)(1) of such Code is amended 
by striking ‘‘section 2001(c) as in effect on the date 
of such receipt’’ and inserting ‘‘section 2502(a)(2)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to gifts made on or after the date 
of the enactment of this Act. 
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HR 1105 RDS 
(f) TRANSITION RULE.— 
(1) IN
GENERAL.—For purposes of applying 
sections 1015(d), 2502, and 2505 of the Internal 
Revenue Code of 1986, the calendar year in which 
this Act is enacted shall be treated as 2 separate cal-
endar years one of which ends on the day before the 
date of the enactment of this Act and the other of 
which begins on such date of enactment. 
(2) APPLICATION
OF
SECTION 2504(b).—For 
purposes of applying section 2504(b) of the Internal 
Revenue Code of 1986, the calendar year in which 
this Act is enacted shall be treated as one preceding 
calendar period. 
SEC. 4. BUDGETARY EFFECTS. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to sec-
tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
Passed the House of Representatives April 16, 2015. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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