In short
A qualified disclaimer is a beneficiary's refusal of an inheritance or gift. The property passes as if the person who disclaimed had died first, and the refusal isn't treated as a gift by them.
Key takeaways
- It must be in writing and made within 9 months of the transfer (or of turning 21, if later).
- The person can't have accepted any benefit from the property.
- The property must pass without the disclaimant directing who gets it.
Where it's tested
TCP: Estate & Gift Tax Planning — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A client's total estate is well below the $15 million exemption. The client asks whether to gift highly appreciated stock to children now or hold it until death. From a pure tax standpoint, which is generally better and why?