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of which, after severance, would maintain a complete and
independent existence. Thus, A could make a qualified disclaimer
of 300 identified acres of the 500 acres, see sec. 25.2518-3(d),
Example (3), Gift Tax Regs., and a qualified disclaimer of 300
head of the cattle, see id. Example (1).
Christensen bequeathed to Hamilton a fee simple in the
estate property, and Hamilton disclaimed a pecuniary amount of
$3,228,904.98. As a result of Hamilton’s disclaimer, under the
terms of Christensen’s will, $2,421,671 (75 percent of the
pecuniary amount) passes to the trust and $807,233.98 (25 percent
of the pecuniary amount) passes to the foundation. Under the
terms of the trust, the foundation receives a 20-year annuity,
valued at $1,987,515. Both Hamilton and the foundation receive
contingent remainders, the values of which total $434,156.
Hamilton’s disclaimer is not effective to pass the entire
disclaimed property to a person other than herself because she
has the right to receive a contingent remainder of the trust by
means of Christensen’s will. However, the foundation’s interest
in the disclaimed property and the trust’s interest in the
disclaimed property are separate undivided interests. Hamilton
retains no interest in the amount that passes outright to the
foundation. Therefore, Hamilton’s disclaimer is a qualified
disclaimer with respect to the $807,233.98 that passes outright
to the foundation.
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