Internal Revenue Code:Sec. 2518. Disclaimers

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 12 - GIFT TAX
        Subchapter B - Transfers
      

Statute

    Sec. 2518. Disclaimers
 
    (a) General rule
      For purposes of this subtitle, if a person makes a qualified
    disclaimer with respect to any interest in property, this subtitle
    shall apply with respect to such interest as if the interest had
    never been transferred to such person.
    (b) Qualified disclaimer defined
      For purposes of subsection (a), the term ''qualified disclaimer''
    means an irrevocable and unqualified refusal by a person to accept
    an interest in property but only if -
        (1) such refusal is in writing,
        (2) such writing is received by the transferor of the interest,
      his legal representative, or the holder of the legal title to the
      property to which the interest relates not later than the date
      which is 9 months after the later of -
          (A) the day on which the transfer creating the interest in
        such person is made, or
          (B) the day on which such person attains age 21,
        (3) such person has not accepted the interest or any of its
      benefits, and
        (4) as a result of such refusal, the interest passes without
      any direction on the part of the person making the disclaimer and
      passes either -
          (A) to the spouse of the decedent, or
          (B) to a person other than the person making the disclaimer.
    (c) Other rules
      For purposes of subsection (a) -
      (1) Disclaimer of undivided portion of interest
        A disclaimer with respect to an undivided portion of an
      interest which meets the requirements of the preceding sentence
      shall be treated as a qualified disclaimer of such portion of the
      interest.
      (2) Powers
        A power with respect to property shall be treated as an
      interest in such property.
      (3) Certain transfers treated as disclaimers
        A written transfer of the transferor's entire interest in the
      property -
          (A) which meets requirements similar to the requirements of
        paragraphs (2) and (3) of subsection (b), and
          (B) which is to a person or persons who would have received
        the property had the transferor made a qualified disclaimer
        (within the meaning of subsection (b)),
      shall be treated as a qualified disclaimer.
 

Sources

    (Added Pub. L. 94-455, title XX, Sec. 2009(b)(1), Oct. 4, 1976, 90
    Stat. 1893; amended Pub. L. 95-600, title VII, Sec. 702(m)(1), Nov.
    6, 1978, 92 Stat. 2935; Pub. L. 97-34, title IV, Sec. 426(a), Aug.
    13, 1981, 95 Stat. 318; Pub. L. 97-448, title I, Sec. 104(e), Jan.
    12, 1983, 96 Stat. 2384.)
 

Miscellaneous

                                 AMENDMENTS
      1983 - Subsec. (c)(3). Pub. L. 97-448 substituted ''A written
    transfer'' for ''For purposes of subsection (a), a written
    transfer''.
      1981 - Subsec. (c)(3). Pub. L. 97-34 added par. (3).
      1978 - Subsec. (b)(4). Pub. L. 95-600 inserted provision relating
    to spouse of decedent.
                      EFFECTIVE DATE OF 1983 AMENDMENT
      Amendment by Pub. L. 97-448 effective, except as otherwise
    provided, as if it had been included in the provision of the
    Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
    amendment relates, see section 109 of Pub. L. 97-448, set out as a
    note under section 1 of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 426(b) of Pub. L. 97-34 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply to
    transfers creating an interest in the person disclaiming made after
    December 31, 1981.''
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Section 702(m)(2) of Pub. L. 95-600 provided that: ''The
    amendment made by paragraph (1) (amending this section) shall apply
    to transfers creating an interest in the person disclaiming made
    after December 31, 1976.''
                               EFFECTIVE DATE
      Section 2009(e)(2) of Pub. L. 94-455 provided that: ''The
    amendments made by subsection (b) (enacting this section and
    section 2046 of this title and amending sections 2041, 2055, 2056,
    and 2514 of this title) shall apply with respect to transfers
    creating an interest in the person disclaiming made after December
    31, 1976.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2046, 2654 of this title.