Stacey inherits unimproved land (fair market value of $6 million) from her father on June 1,2014.Stacey disclaims her interest in the property as follows: one-third on December 1,2014;one-third on January 3,2015;and the remaining one-third on May 31,2015.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 federal gift tax applies to the disclaimer made on May 31, 2015, as it was made within three years of Stacey's father's death. The other disclaimers made in 2014 and 2015 are not subject to gift tax as they were made more than three years after the date of death. The fair market value of the interest disclaimed on May 31, 2015, will be included in Stacey's gross estate for federal estate tax purposes.

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