U.S. Code » Title 26 » Subtitle Subtitle B— Estate and Gift Taxes › Chapter CHAPTER 12— GIFT TAX › Subchapter Subchapter B— Transfers

26 U.S.C. § 2518

Disclaimers

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(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 definedFor 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 rulesFor 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 disclaimersA 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, § 2009(b)(1), Oct. 4, 1976, 90 Stat. 1893; amended Pub. L. 95–600, title VII, § 702(m)(1), Nov. 6, 1978, 92 Stat. 2935; Pub. L. 97–34, title IV, § 426(a), Aug. 13, 1981, 95 Stat. 318; Pub. L. 97–448, title I, § 104(e), Jan. 12, 1983, 96 Stat. 2384.)Editorial NotesAmendments

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.

Statutory Notes and Related SubsidiariesEffective 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

Pub. L. 97–34, title IV, § 426(b), Aug. 13, 1981, 95 Stat. 318, 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

Pub. L. 95–600, title VII, § 702(m)(2), Nov. 6, 1978, 92 Stat. 2935, 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

Pub. L. 94–455, title XX, § 2009(e)(2), Oct. 4, 1976, 90 Stat. 1896, 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.”

Notes of Decisions
Cited in 39 cases (2 in the last 5 years), 1980–2023 · leading case: Kennedy v. Plan Adm'r for DuPont Sav. & Inv. Plan, 555 U.S. 285 (2009).
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Kennedy v. Plan Adm'r for DuPont Sav. & Inv. Plan, 555 U.S. 285 (2009). · cites it 2× “” 1 The plan does, however, permit a beneficiary to submit a “qualified disclaimer” of benefits as defined under the Tax Code, see 26 U. S. C. § 2518 , which has the effect of switching the beneficiary to an “alternate .”
Jewett v. Comm'r, 455 U.S. 305 (1982). · cites it 4× “Section 2518, as so added to the Code, however, was specifically made prospective only, that is, it was made applicable only to transfers creating an interest after 1976.”
United States v. James D. Paulson, 68 F.4th 528 (9th Cir. 2023). · cites it 4× “See 26 U.S.C. § 2518 ; 26 C.F.R. § 25.2518-2 .”
Est. of Christiansen v. Comm'r, 586 F.3d 1061 (8th Cir. 2009). · cites it 3× “The Commissioner argued that the act of challenging the estate’s return and the resulting adjustment to the estate’s value served as post-death, post-disclaimer contingencies that disqualified the disclaimer under 26 U.S.C. § 2518 and Treasury Regulation § 20.”
United States v. Irvine, 511 U.S. 224 (1994). · cites it 2× “See 26 U. S. C. § 2518 ; Treas. Reg. §§ 25.2518-1 , 25.”
Sims v. Hall, 592 S.E.2d 315 (S.C. Ct. App. 2003). · cites it 2× “See 26 U.S.C.A. § 2518 (2003). South Carolina adopted the Internal Revenue Code’s disclaimer requirements for its estate tax laws.”
Williams v. Ely, 423 Mass. 467 (Mass. 1996). “1520 , 1893, 1896 (1976) (codified, as amended, at 26 U.S.C. § 2518 [1994]), effective January 1, 1977.”
In Re Est. of Holden, 539 S.E.2d 703 (S.C. 2000). · cites it 2× “26 U.S.C.A. § 2518 (1989) (underline added).”
Baillie v. Raoul, 2019 IL App (4th) 180655 (Ill. App. Ct. 2019). · cites it 3× “See also 26 U.S.C. § 2518 (b)(2) (2012) (nine-month rule for a qualified disclaimer).”
McDonald v. Comm'r, 853 F.2d 1494 (8th Cir. 1988). · cites it 5× “26 U.S.C. § 2518 (applicable for transfers creating an interest in the disclaimant after December 31, 1976); 8 26 C.”
Linck v. Barokas & Martin, R.R., 667 P.2d 171 (Alaska 1983). “See also Internal Revenue Code, 26 U.S.C.A. § 2518 (1983) (authorizing, and setting out le *173 gal requirements for, “a qualified disclaimer with respect to any interest in property”).”
Leipham v. Adams, 894 P.2d 576 (Wash. Ct. App. 1995). · cites it 2× “26 U.S.C. § 2518 (b). Federal regulations define acceptance as follows: (d) No acceptance of benefits — (1) Acceptance.”
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