Member of the family
(1) Member of the family. With respect to any individual, member of the family means the individual's spouse, any ancestor or lineal descendant of the individual or the individual's spouse, any brother or sister of the individual, and any spouse of the foregoing. (2) Transfer in trust. A transfer in trust includes a transfer to a new or existing trust and an assignment of an interest in an existing trust. Transfer in trust does not include (i) The exercise, release or lapse of a power of appointment over trust property that is not a transfer under chapter 12; or (ii) The execution of a qualified disclaimer (as defined in section 2518). (3) Retained. Retained means held by the same individual both before and after the transfer in trust. In the case of the creation of a term interest, any interest in the property held by the transferor immediately after the transfer is treated as held both before and after the transfer. (4) Interest. An interest in trust includes a power with respect to a trust if the existence of the power would cause any portion of a transfer to be treated as an incomplete gift under chapter 12. (5) Holder. The holder is the person to whom the annuity or unitrust interest is payable during the fixed term of that interest. References to holder shall also include the estate of that person. (6) Qualified interest. Qualified interest means a qualified annuity interest, a qualified unitrust interest, or a qualified remainder interest. If a transferor retains a power to revoke a qualified annuity interest or qualified unitrust interest of the transferor's spouse, then the revocable qualified annuity or unitrust interest of the transferor's spouse is treated as a retained qualified interest of the transferor. In order for the transferor to be treated as having retained a qualified interest under the preceding sentence, the interest of the transferor's spouse (the successor holder) must be an interest that meets the requirements of a qualified annuity interest in accordance with 25.2702-3(b) and (d), or a qualified unitrust interest in accordance with 25.2702-3(c) and (d), but for the transferor's retained power to revoke the interest. (7) Qualified annuity interest. Qualified annuity interest means an interest that meets all the requirements of 25.2702-3(b) and (d). (8) Qualified unitrust interest. Qualified unitrust interest means an interest that meets all the requirements of 25.2702-3(c) and (d). (9) Qualified remainder interest. Qualified remainder interest means an interest that meets all the requirements of 25.2702-3(f). (10) Governing instrument. Governing instrument means the instrument or instruments creating and governing the operation of the trust arrangement.