- 18 - make a qualified disclaimer under section 2518(b) or otherwise substantially comply with section 2518, so that the interests in property alleged to be disclaimed are properly included in decedent's gross estate. I. Did Decedent Make a Qualified Disclaimer? Section 2033 includes in the gross estate the value of all property to the extent of the interest of the decedent at the time of death. Section 2046 incorporates the provisions of section 2518, which governs disclaimers of property interests for Federal gift tax purposes. Under section 2046, a "qualified disclaimer" meeting the requirements of section 2518 results in the disclaimant's being treated as having never received the disclaimed interest in property for Federal estate tax purposes. Instead, as provided by section 25.2518-1(b), Gift Tax Regs., the interest is considered as passing directly to the persons entitled to receive the property as a result of the disclaimer. Section 2518(a) provides that if a person makes a "qualified disclaimer with respect to any interest in property", Subtitle B (concerning estate and gift taxes) "shall apply with respect to such interest as if the interest had never been transferred to such person." Section 2518(b) defines a "qualified disclaimer" as follows: the term "qualified disclaimer" means an irrevocable and unqualified refusal by a person to accept an interest in property but only if--Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011