- 25 -
1989-675). Decedent had not yet been appointed personal
representative of Mrs. Chamberlain's estate when he prepared
Exhibit 5-E. Although decedent was the personal representative
of Mrs. Chamberlain's estate when he signed the Probate
Inventory, as discussed supra, the Probate Inventory could have
no operative effect as a disclaimer by decedent in his own right,
inasmuch as he signed it in a fiduciary capacity.
II. State Law Compliance
Prior to enactment of section 2518 by the Tax Reform Act of
1976, Pub. L. 94-455, sec. 2009(b)(1), 90 Stat. 1893, the tax
consequences of an effective disclaimer were prescribed under
several Code sections.6 These sections did not provide
definitive rules as to what constituted a disclaimer for Federal
estate, gift, or generation skipping transfer tax purposes
("Federal transfer taxes"); they relied in part on local law to
determine whether a valid disclaimer had been made. See Fuller
v. Commissioner, 37 T.C. 147 (1961). As a result, the Federal
tax consequences of a disclaimer could depend on its treatment
under local law and on the type of transfer tax being imposed.
See H. Rept. 94-1380, supra at 66. Congress enacted section 2518
6 See, e.g., secs. 2041(a)(2), 2514(b) (disclaimers of
general powers of appointment); secs. 2055(a) and 2056(d) (estate
tax charitable and marital deduction provisions); sec. 25.2511-
1(c), Gift Tax Regs. (disclaimer must comply with local law in
order to be valid for gift tax purposes).
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