TITLE

Using Disclaimers After the New Regulations

AUTHOR(S)
Englebrecht, Ted D.; Witt, Kayoko
PUB. DATE
May 1999
SOURCE
Journal of Financial Planning;May99, Vol. 12 Issue 5, p79
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article presents information on disclaimers. A qualified disclaimer is an irrevocable and unqualified refusal to accept the ownership of an interest in property. For federal estate, gift and generation-skipping tax purposes, the disclaimed interest in property is treated as if it had never been transferred to the person who made the qualified disclaimer. At first glance, the requirements of a qualified disclaimer appear straight-forward. However, tax and financial planning consultants are finding that disclaimers are not necessarily a clear and unencumbered area. Taxpayers have encountered significantly divergent interpretations by the courts on several attributes of disclaimers. The reason a person makes a disclaimer may or may not be tax related. Some may refuse to accept a gift simply because they do not want it. Others may make a disclaimer for the benefit of someone else. For example, a child of a decedent may make a disclaimer so that his or her surviving parent may receive an interest in the property disclaimed. Others use a disclaimer for tax purposes because a disclaimer can be an effective financial planning tool. Disclaimers can be valuable in financial and estate planning. The most common use may be in adjusting marital deductions. Although a decedent cannot change or correct his or her own will, survivors may do so by using the disclaimer technique.
ACCESSION #
1877466

 

Related Articles

  • Cleaning Up With a QTIP Trust. Krebsbach, Karen // Bank Investment Consultant;Apr2003, Vol. 11 Issue 4, p29 

    Qualified Terminable Interest Property (QTIP) Trust can solve problems in estate planning in a single family in the U.S. The hallmark of the QTIP trust, created in 1981, is to hold qualified terminable interest property for the purpose of taking the marital deduction. Typically, the QTIP allows...

  • Optimal Use of the Marital Deduction in Estate Tax Planning. Weber, Richard P. // Journal of the American Taxation Association;Spring93, Vol. 15 Issue 1, p136 

    Married couples can save up to $1,052,000 in estate taxes through optimal combination of the transfer tax rate schedule, the unified credit, and the marital deduction. In the special case in which both deaths occur relatively close together (zero to ten years apart), larger tax savings can be...

  • Danger in Not Asking. Lewis, Jeffrey D. // Practical Accountant;Apr2000, Vol. 33 Issue 4, p53 

    Offers guidelines to accountants on how to handle marital tax deductions for couples who are not American citizens. Ways to avoid the loss of the marital deduction if a qualified domestic trust (QDOT) has not been established prior to the death of a spouse; Assigning or transferring assets to a...

  • Retirement Plan Strategies. Steiner, Bruce D. // Journal of Retirement Planning;Sep2008, Vol. 11 Issue 5, p5 

    The article provides information on the strategies on how to plan the retirement life of married couples in the U.S. It discusses the basic tools of estate planning for married clients including marital deduction and credit shelter planning. In connection, the article notes that the client has...

  • Marital deduction for bequest contingent on QTIP election.  // Practical Accountant;Apr94, Vol. 27 Issue 4, p8 

    Discusses a case on the taxation of estate planning in the United States. Marital deduction for bequest contingent on qualified terminable interest property (QTIP) election; Mandate of Section 2056(b)(7) of the Internal Revenue Code; Court decision.

  • The Role of the Marital Deduction in Planning Intergenerational Transfers. Reinders, David; Boehlje, Michael; Harl, Neil E. // American Journal of Agricultural Economics;Aug80, Vol. 62 Issue 3, p384 

    The marital deduction is an important and commonly used estate-planning tool. The optimal marital deduction should be chosen to minimize the present value of the tax outlays at the deaths of both the husband and wife given the expected growth rate, the appropriate discount rate, the expected...

  • THE YEAR IN REVIEW. Tacchino, Kenn Beam // Journal of Financial Service Professionals;Nov2001, Vol. 56 Issue 6, p10 

    This article takes a look back at what the periodical 'Journal of Financial Service Professionals,' featured in 2001. Of particular interest to financial professionals was the impact on the discipline of estate planning of the elimination of the estate tax. A list of the articles and columns...

  • Retirement: Plan for More Than Money! Chasen, Jerry // Journal of Practical Estate Planning;Dec2007, Vol. 9 Issue 6, p23 

    The article describes a model for retirement planning that can be used by clients in coming up with the most fulfilling and productive aspect of their lives. Retirement is found to be more than just an issue of money. Its underlying stressfulness seems to be caused by three factors. They refer...

  • Your Guide to Love Money. Richardson, Nicole Marie // Black Enterprise;Feb2008, Vol. 38 Issue 7, p91 

    The article reports on the plan of the periodical to launch a series of marriage and money management seminars in 2008. The three-part Guide to Love and Money will spotlight the trials and triumphs black couples face when dealing with finances. In March, it will delve into how marriage can be...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics