Treatment of designation of new beneficiary
The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) unless the new beneficiary is—
(i)#
assigned to the same generation as (or a higher generation than) the old beneficiary (determined in accordance with section 2651), and
(ii)#
a member of the family of the old beneficiary.