### Question
How does Skipping Transfers define taxable termination?


### Answer
Under *26 U.S.C. § 2612*, **taxable termination** is defined as:

> the termination (by death, lapse of time, release of power, or otherwise) of an interest in property held in a trust unless—



(A) immediately after such termination, a non-skip person has an interest in such property, or



(B) at no time after such termination may a distribution (including distributions on termination) be made from such trust to a skip person

#### Citation:
  - *26 U.S.C. § 2612*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 13-TAX ON GENERATION-SKIPPING TRANSFERS > Subchapter B-Generation-Skipping Transfers**

