21500. As used in this part, "Internal Revenue Code" means the
Internal Revenue Code of 1986, as amended from time to time. A
reference to a provision of the Internal Revenue Code includes any
subsequent provision of law enacted in its place.
21501. (a) This part applies to a distribution made on or after
January 1, 1988, whether the transferor died before, on, or after
(b) A distribution made on or after January 1, 1983, and before
January 1, 1988, is governed by the applicable law in effect before
January 1, 1988.
21502. (a) This part does not apply to an instrument the terms of
which expressly or by necessary implication make this part
(b) By an appropriate statement made in an instrument, the
transferor may incorporate by reference any or all of the provisions
of this part. The effect of incorporating a provision of this part in
an instrument is to make the incorporated provision a part of the
instrument as though the language of the incorporated provision were
set forth verbatim in the instrument. Unless an instrument
incorporating a provision of this part provides otherwise, the
instrument automatically incorporates the provision's amendments.
21503. (a) If an instrument includes a formula intended to
eliminate the federal estate tax, the formula shall be applied to
eliminate or to reduce to the maximum extent possible the federal
(b) If an instrument includes a formula that refers to a maximum
fraction or amount that will not result in a federal estate tax, the
formula shall be construed to refer to the maximum fraction or amount
that will not result in or increase the federal estate tax.