Estate of Monroe v. Commissioner

EDITH H. JONES, Circuit Judge:

I. BACKGROUND

This case requires interpretation of § 2518(b) of the Internal Revenue Code and its accompanying regulations, which describe “qualified disclaimer” of benefits, a device commonly used for “post-mortem” estate and other tax planning. The diselaimants here were 29 legatees of the wife’s will, all of whom were asked by her husband and did irrevocably disclaim the proffered bequests. Shortly afterward, the husband gave them gifts equaling or exceeding the bequests, and not long after that he died at age 93. The Tax Court concluded that the disclaimers…