### Question
What does qualified severance mean?


### Answer
**Qualified severance** has the following meaning in *26 U.S.C. § 2642*:

> the division of a single trust and the creation (by any means available under the governing instrument or under local law) of two or more trusts if—


(I) the single trust was divided on a fractional basis, and


(II) the terms of the new trusts, in the aggregate, provide for the same succession of interests of beneficiaries as are provided in the original trust

#### Citation:
  - *26 U.S.C. § 2642*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 13-TAX ON GENERATION-SKIPPING TRANSFERS > Subchapter E-Applicable Rate; Inclusion Ratio**

