Estate of Henry A. Lassiter, deceased, Paula Ann Masters Lassiter, administrator, C.T.A. - Page 30

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                         (1) The person other than the surviving                        
                    spouse makes a qualified disclaimer with respect                    
                    to such interest; and                                               
                         (2) The surviving spouse is entitled to such                   
                    interest in property as a result of such                            
                    disclaimer, the disclaimed interest is treated as                   
                    passing directly from the decedent to the                           
                    surviving spouse. * * *                                             
          This Court has similarly reiterated that “a trust that was not                
          eligible initially for a marital deduction may become eligible if             
          the persons with interests in the trust that jeopardize the                   
          marital deduction, other than the surviving spouse, effectively               
          disclaim their interests.”  Estate of Bennett v. Commissioner,                
          100 T.C. 42, 58 (1993).                                                       
               Nonetheless, such a disclaimer can be “qualified” and                    
          effective for purposes of Federal estate tax law only to the                  
          extent that it satisfies the requirements enumerated in section               
          2518.  See sec. 2046.  Section 2518 reads in part as follows:                 
               SEC. 2518.  DISCLAIMERS.                                                 
                    (a) General Rule.--For purposes of this subtitle,                   
               if a person makes a qualified disclaimer with respect                    
               to any interest in property, this subtitle shall apply                   
               with respect to such interest as if the interest had                     
               never been transferred to such person.                                   
                    (b) Qualified Disclaimer Defined.--For purposes of                  
               subsection (a), the term “qualified disclaimer” means                    
               an irrevocable and unqualified refusal by a person to                    
               accept an interest in property but only if--                             
                         (1) such refusal is in writing,                                
                         (2) such writing is received by the                            
                    transferor of the interest, his legal                               
                    representative, or the holder of the legal title                    

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Last modified: May 25, 2011