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her estate among Hamilton, the Foundation, and the Trust,
Christiansen’s lawyers wrote the will to pass everything (after
payments of any debts and funeral expenses) to Hamilton. But the
will also provided that if Hamilton disclaimed any part of the
estate, 75 percent of the disclaimed portion would go to the
Trust and 25 percent to the Foundation.
Christiansen died in April 2001, and her will was admitted
to probate. Hamilton was named personal representative, and as
planned, executed a partial disclaimer. The disclaimer’s
language is central to this case, and we reproduce the relevant
portion here:
A. Partial Disclaimer of the Gift:
Intending to disclaim a fractional portion of
the Gift, Christine Christiansen Hamilton
hereby disclaims that portion of the Gift
determined by reference to a fraction, the
numerator of which is the fair market value
of the Gift (before payment of debts,
expenses and taxes) on April 17, 2001, less
Six Million Three Hundred Fifty Thousand and
No/100 Dollars ($6,350,000.00) and the
denominator of which is the fair market value
of the Gift (before payment of debts,
expenses and taxes) on April 17, 2001 (“the
Disclaimed Portion”). For purposes of this
paragraph, the fair market value of the Gift
(before payment of debts, expenses and taxes)
on April 17, 2001, shall be the price at
which the Gift (before payment of debts,
expenses and taxes) would have changed hands
on April 17, 2001, between a hypothetical
willing buyer and a hypothetical willing
seller, neither being under any compulsion to
buy or sell and both having reasonable
knowledge of relevant facts for purposes of
Chapter 11 of the [Internal Revenue] Code, as
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