Under his grandfather's will, Thad is entitled to receive shares of Kroger Corporation. For Federal transfer tax purposes, Thad is allowed to disclaim some of these shares and accept the others.

Question

Quizplus · Accepted Answer

This is true. The Internal Revenue Service (IRS) allows a beneficiary to renounce part or all of an inheritance by disclaiming it. By doing so, the beneficiary can avoid the transfer tax on that portion of the inheritance, and it will pass to the next designated recipient or trust beneficiary.

Under His Grandfather's Will, Thad Is Entitled to Receive Shares