
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2518]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                          CHAPTER 12--GIFT TAX
 
                         Subchapter B--Transfers
 
Sec. 2518. Disclaimers


(a) General rule

    For purposes of this subtitle, if a person makes a qualified 
disclaimer with respect to any interest in property, this subtitle shall 
apply with respect to such interest as if the interest had never been 
transferred to such person.

(b) Qualified disclaimer defined

    For purposes of subsection (a), the term ``qualified disclaimer'' 
means an irrevocable and unqualified refusal by a person to accept an 
interest in property but only if--
        (1) such refusal is in writing,
        (2) such writing is received by the transferor of the interest, 
    his legal representative, or the holder of the legal title to the 
    property to which the interest relates not later than the date which 
    is 9 months after the later of--
            (A) the day on which the transfer creating the interest in 
        such person is made, or
            (B) the day on which such person attains age 21,

        (3) such person has not accepted the interest or any of its 
    benefits, and
        (4) as a result of such refusal, the interest passes without any 
    direction on the part of the person making the disclaimer and passes 
    either--
            (A) to the spouse of the decedent, or
            (B) to a person other than the person making the disclaimer.

(c) Other rules

    For purposes of subsection (a)--

           (1) Disclaimer of undivided portion of interest

        A disclaimer with respect to an undivided portion of an interest 
    which meets the requirements of the preceding sentence shall be 
    treated as a qualified disclaimer of such portion of the interest.

                             (2) Powers

        A power with respect to property shall be treated as an interest 
    in such property.

            (3) Certain transfers treated as disclaimers

        A written transfer of the transferor's entire interest in the 
    property--
            (A) which meets requirements similar to the requirements of 
        paragraphs (2) and (3) of subsection (b), and
            (B) which is to a person or persons who would have received 
        the property had the transferor made a qualified disclaimer 
        (within the meaning of subsection (b)),

    shall be treated as a qualified disclaimer.

(Added Pub. L. 94-455, title XX, Sec. 2009(b)(1), Oct. 4, 1976, 90 Stat. 
1893; amended Pub. L. 95-600, title VII, Sec. 702(m)(1), Nov. 6, 1978, 
92 Stat. 2935; Pub. L. 97-34, title IV, Sec. 426(a), Aug. 13, 1981, 95 
Stat. 318; Pub. L. 97-448, title I, Sec. 104(e), Jan. 12, 1983, 96 Stat. 
2384.)


                               Amendments

    1983--Subsec. (c)(3). Pub. L. 97-448 substituted ``A written 
transfer'' for ``For purposes of subsection (a), a written transfer''.
    1981--Subsec. (c)(3). Pub. L. 97-34 added par. (3).
    1978--Subsec. (b)(4). Pub. L. 95-600 inserted provision relating to 
spouse of decedent.


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 97-448 effective, except as otherwise provided, 
as if it had been included in the provision of the Economic Recovery Tax 
Act of 1981, Pub. L. 97-34, to which such amendment relates, see section 
109 of Pub. L. 97-448, set out as a note under section 1 of this title.


                    Effective Date of 1981 Amendment

    Section 426(b) of Pub. L. 97-34 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to transfers 
creating an interest in the person disclaiming made after December 31, 
1981.''


                    Effective Date of 1978 Amendment

    Section 702(m)(2) of Pub. L. 95-600 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply to transfers 
creating an interest in the person disclaiming made after December 31, 
1976.''


                             Effective Date

    Section 2009(e)(2) of Pub. L. 94-455 provided that: ``The amendments 
made by subsection (b) [enacting this section and section 2046 of this 
title and amending sections 2041, 2055, 2056, and 2514 of this title] 
shall apply with respect to transfers creating an interest in the person 
disclaiming made after December 31, 1976.''

                  Section Referred to in Other Sections

    This section is referred to in sections 2046, 2654 of this title.
