-50-
sometime in the future. The regulation speaks in terms of a
right to receive property, and the rights Christiansen’s daughter
has are uncertain at best.
II. Severable Property
The majority hedges its bets after concluding that the
italicized sentence in section 25.2518-2(e)(3), Gift Tax Regs.,
“seems to resolve this issue.” The majority goes on to discuss
whether the contingent remainder Christiansen’s daughter retained
is severable property or an undivided portion of property,
reaching the perfunctory conclusion that the remainder is
nonseverable. I respectfully disagree with this conclusion.
As previously stated, proper application of section 25.2518-
2(e)(3), Gift Tax Regs., considers whether the disclaimed
property that the disclaimant has the right to receive is
severable. Severable property is property that can be divided
into separate parts, each of which maintains a complete and
independent existence after severance. Sec. 25.2518-3(a)(1)(ii),
Gift Tax Regs.
The majority mischaracterizes the interests in concluding
that they are nonseverable. Christiansen’s daughter did not
disclaim an income interest in the Trust. Instead,
Christiansen’s daughter effectively disclaimed an annuity
interest. An annuity is a commonly purchased financial interest
that gives its holder the right to a certain stream of payments
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