Qualified Disclaimer

Qualified disclaimer is a type of disclaimer that is used to avoid federal estate tax and the gift tax associated with the property, piece of land or real estate. In further explanation we can define qualified disclaimer as a refusal from the issuing party in terms of accepting any property that fall within the provisions associated with the Internal Revenue Code Tax Reform of 1976 Act for allowing the property or the interest in the property as an entity that has never been received. As described above the major reason behind such a refusal is to avoid estate tax and the gift tax. Another purpose of the qualified disclaimer is to generate such transfers of the property among the generations that tends to avoid the transfer tax regarding the transfer of the property. However for qualifying for a qualified disclaimer the property and the property holder must meet the following requirements:-

  • The disclaimer must be hand written that is made in writing and must be signed by the disclaiming party
  • There must be a proper identification of the property or the interest in the property within the disclaimer
  • The disclaimer must be delivered in writing to the person or the entity that is trying to transfer the assets from the giver to the receivers
  • The disclaimer must be written within less than nine months of the date at which the property was transferred from the giver to the receiver
  • Moreover the qualified or non-qualified status of the disclaimer will be strictly defined by Internal Revenue Code

 

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