- 31 -
to the property to which the interest relates not
later than the date which is 9 months after the
later of--
(A) the date on which the transfer
creating the interest in such person is made,
or
(B) the day on which such person attains
age 21,
(3) such person has not accepted the interest
or any of its benefits, and
(4) as a result of such refusal, the interest
passes without any direction on the part of the
person making the disclaimer and passes either--
(A) to the spouse of the decedent, or
(B) to a person other than the person
making the disclaimer.
(c) Other Rules.--For purposes of subsection (a)--
(1) Disclaimer of undivided portion of
interest.--A disclaimer with respect to an
undivided portion of an interest which meets the
requirements of the preceding sentence shall be
treated as a qualified disclaimer of such portion
of the interest.
(2) Powers.--A power with respect to property
shall be treated as an interest in such property.
Moreover, in order for the requirement of section 2518(b)(4)
to be met, a disclaimer must also be effective under applicable
State law. See Estate of Bennett v. Commissioner, supra at 67.
Such is demanded by the previously mentioned general rule that
legal rights and interests in property, and transfers thereof,
are created and determined by State law, but the manner in which
these interests are to be taxed is governed by Federal law. See
Page: Previous 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 NextLast modified: May 25, 2011