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of the first spouse to die. This causes the taxable estate of
the surviving spouse to be larger than it would have been if an
amount equal to the unified credit in the estate of the first
spouse to die had passed directly to the object or objects of
their joint bounty.
The technique for using the unified credit in the estate of
the first spouse to die that Meyer & Wyse discussed with decedent
and Mrs. Chamberlain was to have the surviving spouse disclaim
all or part of his or her interest in the estate of the first to
die. Using this technique would ensure that the unified credit
would be fully used in the estates of both spouses. By
bequeathing the residuary estate to the surviving spouse and
providing for the disposition of any property disclaimed, the
wills enabled the surviving spouse, with the benefit of current
asset valuations, to evaluate his or her financial needs and
decide whether to disclaim, and if so, how much to disclaim, so
as to use the unified credit to the extent consistent with his or
her evaluation of his or her own needs. See Manning et al. on
Estate Planning, 2-63 through 2-64 (5th ed. 1998).
Petitioner contends that decedent disclaimed his interests
in the probate property of Mrs. Chamberlain by substantially
complying with section 2518 and Oregon law and should be treated
as having never received the disclaimed interests for Federal
estate tax purposes. Respondent contends that decedent did not
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