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transferor-created interests) or an interest in severable
property that comprises multiple property interests which may be
severed (severable property interests). Generally, each separate
transferor-created interest and each severable property interest
is treated as a separate property interest. Id.
Section 25.2518-3(a)(1)(ii), Gift Tax Regs., defines
severable property as “property which can be divided into
separate parts each of which, after severance, maintains a
complete and independent existence.” For example, if under A’s
will B is to receive “personal effects consisting of paintings,
home furnishings, jewelry, and silver”, B may make a qualified
disclaimer of the paintings and retain the furnishings, jewelry,
and silver. Sec. 25.2518-3(d), Example (1), Gift Tax Regs.
Section 25.2518-3(c), Gift Tax Regs., allows a disclaimer of a
specific pecuniary amount to qualify under section 2518. In
effect the regulation treats a disclaimer of a specific pecuniary
amount as a disclaimer of a severable property interest.
The distinction between qualified disclaimers of separate
transferor-created interests and qualified disclaimers of
severable property is subtle, as shown by the following examples.
Assume T devised the income from a farm to A for life, then to B
for life, with the remainder interest to A’s estate. A’s life
estate and remainder interest in the farm are separate
transferor-created interests. A could make a qualified
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