taxable event

(3) Taxable events For purposes of this subsection— (A) In general The term “taxable event” means any of the following: (i) The death of the transferor if the applicable retained interest conferring the distribution right is includible in the estate of the transferor. (ii) The transfer of such applicable retained interest. (iii) At the election of the taxpayer, the payment of any qualified payment after the period described in paragraph (2)(C), but only with respect to such payment. (B) Exception where spouse is transferee (i) Deathtime transfers Subparagraph (A)(i) shall not apply to any interest includible in the gross estate of the transferor if a deduction with respect to such interest is allowable under section 2056 or 2106(a)(3). (ii) Lifetime transfers A transfer to the spouse of the transferor shall not be treated as a taxable event under subparagraph (A)(ii) if such transfer does not result in a taxable gift by reason of— (I) any deduction allowed under section 2523, or the exclusion under section 2503(b), or (II) consideration for the transfer provided by the spouse. (iii) Spouse succeeds to treatment of transferor If an event is not treated as a taxable event by reason of this subparagraph, the transferee spouse or surviving spouse (as the case may be) shall be treated in the same manner as the transferor in applying this subsection with respect to the interest involved.


26 USC § 2701(d)(3)

Scoping language

For purposes of this subsection
Is this correct? or