-17-
italicized language says: “If the portion of the disclaimed
interest in property which the disclaimant has a right to receive
is not severable property or an undivided portion of the
property, then the disclaimer is not a qualified disclaimer with
respect to any portion of the property.” (Emphasis again added.)
The estate thus has to counterattack by arguing that
Hamilton’s remainder interest is either “severable property” or
“an undivided portion of the property.” But what do these two
terms mean?
C. Severable Property and Undivided Portions
“Severable property” is a defined term. Section 25.2518-
3(a)(1)(ii), Gift Tax Regs., states: “Severable property is
property which can be divided into separate parts each of which,
after severance, maintains a complete and independent existence.
For example, a legatee of shares of corporate stock may accept
some shares of the stock and make a qualified disclaimer of the
remaining shares.” This definition is a bit like the definition
of a molecule--“the smallest particle of a substance that retains
the properties of that substance.”10 Thus, a block of stock can
9(...continued)
conceded that the estate’s return position--taking a deduction
for the full amount of the property passing to the Foundation--
was right. The Commissioner now aims only at the much larger
increase in that deduction triggered by the stipulated increase
in the value of the gross estate. See infra pp. 22-29.
10 Webster’s New Collegiate Dictionary 741 (8th ed. 1974).
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: March 27, 2008