- 41 -
Because Hamilton did not also disclaim her contingent
remainder interest in the trust property (valued by petitioner
and by respondent under respondent’s annuity tables at
$434,1561), under the above regulatory provision there occurred a
partial failure of Hamilton’s disclaimer.
The next clause in section 25.2518-2(e)(3), Gift Tax Regs.,
describes the effect that the partial failure of Hamilton’s
disclaimer has on the interest in the trust property, as follows:
(3) Partial failure of disclaimer.--
* * * * * * *
the disclaimer is not a qualified disclaimer with
respect to the portion of the disclaimed property which
the disclaimant has a right to receive. * * *
[Emphasis added.]
The portion which Hamilton has a right to receive is only
the contingent remainder interest and therefore, under the above
clear and express language of the regulations, it is only that
portion or interest that is to be treated as disqualified.
Only under the second sentence of the above subparagraph (3)
could the trust annuity interest (which Hamilton does not have a
right to receive) be tainted and also be treated as disqualified.
1For purposes of this side opinion, I disregard the
relatively small value of the foundation’s contingent remainder
interest in the trust that stands behind Hamilton’s contingent
remainder interest therein should Hamilton die during the 20-year
term of the trust.
Page: Previous 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Next
Last modified: March 27, 2008