Estate of Theodore J. Chamberlain - Page 18




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          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--                                     





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