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From David T. Leibell and Daniel L. Daniels of Cummings & Lockwood, LLC, Stamford, Conn., we have this update: IRS approves disclaimer of residuary estate to private foundation. In Private Letter Ruling 200519042 (released May 13), the Service ruled that a daughter's disclaimer of an undivided portion of her interest in a parent's residuary estate is a qualified disclaimer, and the disclaimed interest
June 1, 2005
Rorie M. Sherman Editor in Chief
From David T. Leibell and Daniel L. Daniels of Cummings & Lockwood, LLC, Stamford, Conn., we have this update:
IRS approves disclaimer of residuary estate to private foundation. In Private Letter Ruling 200519042 (released May 13), the Service ruled that a daughter's disclaimer of an undivided portion of her interest in a parent's residuary estate is a qualified disclaimer, and the disclaimed interest passing to a private foundation will qualify for the estate tax charitable deduction. The ruling provides a good road map to qualifying a disclaimer when the disclaimant has a continuing role in the foundation.
The facts: a family foundation was established on Date 1. The parent died on Date 2, leaving a will naming the daughter and daughter's husband as co-executors. The will provided that the residuary estate would pass to the daughter. In the event that daughter predeceased or disclaimed all or any portion of the residuary estate, the property would pass to the family foundation. The daughter currently serves as president of the foundation and is also one of six directors. The daughter's husband is vice president of the foundation and a director. The remaining directors are the daughter's four childre...
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