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If a trust is created or property is transferred for
both a charitable and a private purpose, deduction may
be taken of the value of the charitable beneficial
interest only insofar as that interest is presently
ascertainable, and hence severable from the
noncharitable interest. * * *
Judge Swift concludes that because the foundation’s annuity
interest is presently ascertainable, it is severable from
Hamilton’s remainder interest for purposes of qualifying
Hamilton’s disclaimer under section 2518.
Whether an interest has an ascertainable value is not the
proper standard to apply in determining whether that interest is
severable for purposes of making qualified disclaimers under
section 2518. Indeed, the present values of annuities, life
estates, terms of years, remainders, and reversionary interests
are all ascertainable for purposes of transfer taxes on the basis
of recognized valuation principles. See, e.g., sec. 20.2031-7,
Estate Tax Regs. The second sentence of section 20.2055-2(a),
Estate Tax Regs., following the sentence quoted by Judge Swift,
provides:
Thus, in the case of decedents dying before January 1,
1970, if money or property is placed in trust to pay
the income to an individual during his life, or for a
term of years, and then to pay the principal to a
charitable organization, the present value of the
remainder is deductible. * * *
A remainder following a life estate or a term of years is
ascertainable and thus “severable” as the term is used in section
20.2055-2(a), Estate Tax Regs. However, a remainder following a
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