((a)) ** Basis adjustment**

((1)) ** In general** Except as provided in paragraph (2), if property is transferred in a generation-skipping transfer, the basis of such property shall be increased (but not above the fair market value of such property) by an amount equal to that portion of the tax imposed by section 2601 with respect to the transfer which is attributable to the excess of the fair market value of such property over its adjusted basis immediately before the transfer. The preceding shall be applied after any basis adjustment under section 1015 with respect to the transfer.

((2)) ** Certain transfers at death** If property is transferred in a taxable termination which occurs at the same time as and as a result of the death of an individual, the basis of such property shall be adjusted in a manner similar to the manner provided under section 1014(a); except that, if the inclusion ratio with respect to such property is less than 1, any increase or decrease in basis shall be limited by multiplying such increase or decrease (as the case may be) by the inclusion ratio.

((b)) ** Certain trusts treated as separate trusts** For purposes of this chapter—

((1)) the portions of a trust attributable to transfers from different transferors shall be treated as separate trusts, and

((2)) substantially separate and independent shares of different beneficiaries in a trust shall be treated as separate trusts.

((c)) ** Disclaimers** For provisions relating to the effect of a qualified disclaimer for purposes of this chapter, see section 2518.

((d)) ** Limitation on personal liability of trustee** A trustee shall not be personally liable for any increase in the tax imposed by section 2601 which is attributable to the fact that—

((1)) section 2642(c) (relating to exemption of certain nontaxable gifts) does not apply to a transfer to the trust which was made during the life of the transferor and for which a gift tax return was not filed, or

((2)) the inclusion ratio with respect to the trust is greater than the amount of such ratio as computed on the basis of the return on which was made (or was deemed made) an allocation of the GST exemption to property transferred to such trust.