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3(a), Gift Tax Regs., both of which expressly state with regard
to remainder and other interests that the key to whether property
interests are to be treated as severable interests is whether
separate values for each property interest are presently
ascertainable.2 See IRS private letter rulings Priv. Ltr. Rul.
2000-27-014 (Mar. 31, 2000), Priv. Ltr. Rul. 1999-27-010 (Apr. 6,
1999), Priv. Ltr. Rul. 96-35-018 (May 29, 1996), Priv. Ltr. Rul.
96-31-021 (May 3, 1996), each of which treats, in the case of
charitable remainder trusts, the remainder as having an
ascertainable value, as severable, and as deductible; and in the
case of charitable lead trusts, the fixed annuity as having an
ascertainable value, as severable, and as deductible.
Accordingly, the $1,987,515 value of the trust annuity that
Hamilton did disclaim is to be treated as severable from the
$434,156 value of the contingent remainder interest not
disclaimed. Judge Kroupa’s dissenting opinion persuasively
explains this point further.
2For example, sec. 20.2055-2(a), Estate Tax Regs., provides
as follows:
§ 20.2055-2. Transfers not exclusively for charitable
purposes.--(a) Remainders and similar interests.--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. * * *
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