Stacey inherits unimproved land (fair market value of $6 million) from her father on June 1, 2017. Stacey disclaims her interest in the property as follows: one-third on December 1, 2017? one-third on January 3, 2018? and the remaining one-third on May 31, 2018. In all cases, the disclaimers pass the interest to her son (the next heir under state law). The Federal gift tax applies to Stacey for:

Question

Quizplus · Accepted Answer

The disclaimer made on May 31, 2018 is subject to federal gift tax because it occurred more than 9 months after Stacey's father's death. Disclaimers made within 9 months of the decedent's death are not subject to federal gift tax. Therefore, the disclaimers made in 2017 and January 2018 are not subject to federal gift tax. The disclaimers made in 2018 are subject to federal gift tax, but only the one made on May 31, 2018 occurred more than 9 months after the decedent's death.

Stacey Inherits Unimproved Land (Fair Market Value of $6 Million)