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be made after taking into effect the disclaimer. By calculating
the marital deduction in this manner, the disclaimed property
will become part of the estate and used to fund the residuary
bequest in the amount of the credit equivalent.
Petitioner's argument is flawed. First, the statutory
language providing that the disclaimant shall be treated as
predeceasing the testator as to the disclaimed property does not
deal with the issue at hand; i.e., the manner in which the
marital deduction is to be computed after giving effect to such
disclaimer. Section 2518 provides that if a person makes a
qualified disclaimer of property, the property will be treated as
if it had never been transferred to such person. Sec. 2518(a).
Otherwise, the disclaimed property will be treated as a taxable
gift "Since the practical effect of * * * [a taxpayer's]
disclaimers [is] to reduce the expected size of his taxable
estate and to confer a gratuitous benefit upon the natural
objects of his bounty". Jewett v. Commissioner, 455 U.S. 305,
310 (1982); sec. 25.2511-1(c)(1), Gift Tax Regs.; see also sec.
25.2518-1(b), Gift Tax Regs.; 5 Bittker & Lokken, Federal
Taxation of Income, Estates, and Gifts, sec. 129.2.3 (2d ed.
1993) (if a disclaimer does not qualify under section 2518, the
property is probably treated as passing to the disclaimant, who
then makes a gift of it to the taker as a result of the
disclaimer).
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