Disclaimers of Joint Tenancy Interests Revisited

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Uchtmann, D. L.
Zigterman, P. K.

Issue Date

1985

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FIRST PARAGRAPH(S)|According to Internal Revenue Code section 2518, a qualified disclaimer is an irrevocable and unqualified refusal to accept an interest in property. When a disclaimer is made, the federal estate and gift taxes will apply as if the interest had never been transferred to the disclaimant. The disclaimed interest therefore will not be included in the disclaimant's gross estate, nor will the disclaimant be subject to federal gift tax for allowing the interest to pass to another party.|The Internal Revenue Service (I.R.S.) has issued proposed regulations for qualified disclaimers under Internal Revenue Code section 2518. These proposed regulations provide extensive explanations and examples describing the requirements for qualified disclaimers of a variety of interests. The proposed regulations provide only a short statement of rules, however, concerning disclaimers of joint tenancy interests. A revenue ruling and several letter rulings further elaborate the I.R.S. position on disclaimers of joint tenancy interests. The I.R.S. treatment that results appears to be quite restrictive and inconsistent with disclaimer statutes enacted by Arizona, Illinois, and at least a dozen other states...

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18 Creighton L. Rev. 333 (1984-1985)

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Creighton University School of Law

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