-19-
made by the devisee of a fee simple interest
in Blackacre is not a qualified disclaimer if
the disclaimant disclaims a remainder
interest in Blackacre but retains a life
estate.
But for Hamilton’s retaining a remainder interest and giving
up present enjoyment instead of the reverse, the example
describes this case. The Court of Appeals for the Eighth Circuit
explained the distinction by comparing it to horizontal and
vertical slices. Disclaiming a vertical slice--from meringue to
crust--qualifies; disclaiming a horizontal slice--taking all the
meringue, but leaving the crust--does not. Walshire, 288 F.3d at
347. The only difference that we can see between Walshire and
this case is that Walshire disclaimed a remainder interest and
kept the income, while Hamilton tried to do the reverse--but no
matter how you slice it, the cases are indistinguishable.12 We
are left with the conclusion that her disclaimer is “not a
qualified disclaimer with respect to any portion of the
property.” Sec. 25.2518-2(e)(3), Gift Tax Regs.
The dissent reaches a different result by focusing on a
different sort of property--the annuity interest created under
the Trust agreement--and asking whether it is severable property.
We agree that section 20.2055-2(e)(2)(vi), Estate Tax Regs.,
allows the severance of a guaranteed annuity interest from a
12 To be technically precise, Hamilton was giving up an
annuity interest rather than an income interest, but the
distinction makes no difference.
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: March 27, 2008