|
|
|
|
Fractional Disclaimer
Decedent's pre-1977 will created a trust that was to terminate when Decedent's daughter died or her youngest children attained age 21. The will provided Decedent's daughter with a power of appointment in the event that the daughter predeceased Decedent's spouse without surviving children. Decedent's daughter died without issue and her will attempted to exercise the power of appointment. However, because she did not predecease Decedent's spouse, this exercise of the power of appointment was not valid. Parties with interests in the will reached a settlement agreement under which Decedent's nephew would receive one-third of the trust funds. The nephew then disclaimed two-thirds of the trust. Under Reg. §25.2511-1(c)(2), a refusal to accept ownership does not constitute the making of a gift if the refusal of ownership is made within a reasonable time after knowledge of the existence of the transfer. In this case, Decedent's nephew did not learn of the trust until the death of Decedent's daughter. Nor did the nephew's participation in the settlement constitute an acceptance of the property. The fractional disclaimer was valid.
Source: Let. Rul. 200109041
|
About Us
|
News
|
Alerts
|
Articles
|
SNSFE News
|
Calendar
|
Contact
|
Search
Register
|
Free Opinion
Sponsored by James J. Eccleston, an attorney representing stockbrokers, financial planners and
investors nationwide in arbitration, litigation and regulatory matters, and a shareholder with the law firm
Shaheen, Novoselsky, Staat, Filipowski & Eccleston
P.C.(www.snsfe-law.com). This Web site contains material
of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice.
Always consult an attorney and/or investment advisor when building and protecting your wealth.
All content Copyright © 2008 Advocate Capital Management, Inc. except where noted. All rights reserved.
20 North Wacker Drive, Suite 2900, Chicago, Illinois 60606
Telephone: 312-621-4400 | Fax: 312-621-0268
|
|
|
|
|
