- 6 -
Section 2518 provides that, if a person makes a qualified
disclaimer with respect to any interest in property, the
disclaimed interest is treated as if it had never been
transferred to the person making the qualified disclaimer.
The parties agree that the Disclaimer was a qualified
disclaimer within the meaning of section 2518. The parties
disagree regarding how to properly interpret decedent’s will and
the Disclaimer.
Respondent argues that decedent’s will and the Disclaimer
have the effect of funding a trust (as described in Article THIRD
of decedent’s will, and hereinafter referred to as “the Trust”)
with an amount equal to the “aggregate federal estate tax
exemption equivalent” and with the interests in various
securities specified in the Disclaimer.
The estate argues that decedent’s will and the Disclaimer
have the effect of funding the Trust with an amount equal to the
“aggregate federal estate tax exemption equivalent”. According
to the estate, the Disclaimer functions to specify which assets
pass to the Trust; the Disclaimer does not increase the overall
amount passing to the Trust. The estate argues that respondent
is effectively double counting. The estate contends that the
“only assets by which the Trust was to be funded were the five
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011