Stacey inherits unimproved land (fair market value of $6 million) from her father on June 1, 2015. Stacey disclaims her interest in the property as follows: one-third on December 1, 2015; one-third on January 3, 2016; and the remaining one-third on May 31, 2016. 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, 2016 would be subject to gift tax because it occurs more than 9 months after the decedent's death. The other disclaimers made within 9 months of the decedent's death would qualify for the estate tax marital deduction and be tax-free gifts to the son.

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