In a 2012 case, a surviving spouse disclaimed
her interest in an inherited IRA although she continued to receive IRA distributions that exceeded the RMD for the year the deceased IRA owner died.
Seven months after A's death, B disclaimed
$600,000 of the IRA, along with the income attributable to the $600,000 earned after death.
interest in property is not considered to be a transfer by a disclaimant for estate tax purposes and will not be included in his estate at death.
2518 provides that if a person makes a qualified disclaimer as to any interest in property, the disclaimed
interest is treated as if it had never been transferred to the person making the qualified disclaimer, for purposes of the Federal estate, gift and generation-skipping transfer (GST) tax provisions.
The court cited IRC section 25 18(c), which says that only an undivided portion of an interest may be disclaimed
The list does not include inheritances disclaimed
under state law.
Further, the plan language allows an adult child to disclaim his or her interest in the amount disclaimed
by his parent (i.
In such a case, all the assets are left to the surviving spouse, but the will provides that any assets disclaimed
by the spouse pass to a CST.
property passes to grandchildren, and the applicable generation-skipping exemption amount has not been exceeded, tax on the value of this disclaimed
property can be avoided.
2518(b), a qualified disclaimer must be (1) an irrevocable and unqualified refusal by the disclaimant to accept an interest in property, (2) made in writing and (3) made within nine months after the interest being disclaimed
was created (i.
The total amount disclaimed
was about $900,000, which was included in the estate tax marital deduction on Louise Monroe's estate tax return.
In November 1994, H'S estate filed an estate return; its gross income and taxable estate did not include W's assets that the estate claimed had been disclaimed