PUBLIC LAW 100-647—NOV. 10, 1988	102 STAT. 3565
"(3) look-thru rules not to apply.—Solely for purposes of
determining whether any transfer to a trust is a direct skip, the
rules of section 2651(e)(2) shall not apply."
(6)	Subsection (c) of section 2652 of the 1986 Code is amended
by adding at the end thereof the following new paragraph:
"(3) certain support obligations disregarded.—The fact   Gifts and
that income or corpus of the trust may be used to satisfy an    property.
obligation of support arising under State law shall be dis-
regarded in determining whether a person has an interest in
the trust, if—
"(A) such use is discretionary, or
"(B) such use is pursuant to the provisions of any State
law substantially equivalent to the Uniform Gifts to Minors
Act."
 (7)	Paragraph (2) of section 2612(c) of the  1986 Code is
amended by adding at the end thereof the following new sen-
tence: "If any transfer of property to a trust would be a direct
skip but for this paragraph, any generation assignment under
this paragraph shall apply also for purposes of applying this
chapter to transfers from the portion of the trust attributable to
such property."
 (8)	Paragraph (2) of section 2652(c) of the  1986 Code is
amended—
(A)	by striking out "nominal interests" in the para-
graph heading and inserting in lieu thereof "interests",
and
(B)	by striking out "the tax" and inserting in lieu thereof
"any tax".
(9)	Paragraph (1) of section 2652(a) of the  1986 Code is
amended—
 (A)	by striking out "a transfer of a kind" each place it
appears and inserting in lieu thereof "any property", and
 (B)	by adding at the end thereof the following new sen-
tence:
"An individual shall be treated as transferring any property with
respect to which such individual is the transferor."
(10)	Section 2663 of the 1986 Code is amended by striking out
"and" at the end of paragraph (1), by striking out the period at
the end of paragraph (2) and inserting in lieu thereof ", and",
and by adding at the end thereof the following new paragraph:
"(3) regulations providing for such adjustments as may be
necessary to the application of this chapter in the case of any
arrangement which, although not a trust, is treated as a trust
under section 2652(b)."
(11)	Paragraph (3) of section 2651(e) of the 1986 Code is
amended to read as follows:
"(3) treatment of certain charitable organizations and
GOVERNMENTAL ENTITIES.—Any—
"(A) organization described in section 511(aX2),
"(B) charitable trust described in section 511(bX2), and
"(C) governmental entity,
shall be assigned to the transferor's generation."
(12)	Paragraph (2) of section 2654(a) of the 1986 Code is
amended—
(A) by striking out "any increase" and inserting in lieu
thereof "any increase or decrease", and