Qualified Disclaimer to Optimize Estate Distribution

IRC §2046

By making a qualified disclaimer of an inheritance, the assets pass to the next beneficiary as if the disclaimant had predeceased the decedent, avoiding double taxation and potential gift tax.

Eligibility

Must meet the requirements of Section 2518, including being in writing and made within 9 months of the transfer, without the disclaimant accepting any benefits from the property.

Frequently Asked Questions

Who is eligible for the Qualified Disclaimer to Optimize Estate Distribution?

Must meet the requirements of Section 2518, including being in writing and made within 9 months of the transfer, without the disclaimant accepting any benefits from the property.

How does the Qualified Disclaimer to Optimize Estate Distribution work?

By making a qualified disclaimer of an inheritance, the assets pass to the next beneficiary as if the disclaimant had predeceased the decedent, avoiding double taxation and potential gift tax.

What law authorizes the Qualified Disclaimer to Optimize Estate Distribution?

The Qualified Disclaimer to Optimize Estate Distribution is authorized under IRC §2046 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §2046

Source: Internal Revenue Code, Title 26, United States Code

§ 2046. Disclaimers For provisions relating to the effect of a qualified disclaimer for purposes of this chapter, see section 2518. (Added Pub. L. 94–455, title XX, § 2009(b)(2), Oct. 4, 1976, 90 Stat. 1893, § 2045; renumbered § 2046, Pub. L. 97–34, title IV, § 403(d)(3)(A)(i), Aug. 13, 1981, 95 Stat. 304.) Statutory Notes and Related Subsidiaries Effective DateSection applicable to transfers creating an interest in person disclaiming made after Dec. 31, 1976, see section 2009(e)(2) of Pub. L. 94–455, set out as a note under section 2518 of this title.

Legal Sources

US Code (Official) — 26 USC §2046 → Cornell Law Institute — 26 USC §2046 → Search IRS.gov for IRC §2046 → Treasury Regulations (26 CFR) →

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