Page:United States Statutes at Large Volume 80 Part 1.djvu/908

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PUBLIC LAW 89-621-OCT. 4, 1966

[80 STAT.

Public Law 89-621 October 4, 1966 [H. R. 483]

Estate tax. 68A Stat. 395. 26 USC 2056.

Applicability.

68A Stat. 217. 26 USC 642.

AN ACT To amend section 2056 of the Internal Revenue Code of 1954 relating to the effect of disclaimers on the allowance of the marital deduction for estate tax purposes, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 2056(d)(2) of the Internal Revenue Code of 1954 (relating to the treatment of disclaimers in computing the marital deduction for estate tax purposes) is amended to read as follows: ''(2) BY ANY OTHER PERSON.—If under this section an interest would, in the absence of a disclaimer by any person other than the surviving spouse, be considered as passing from the decedent to such person, and if a disclaimer of such interest is made by such person and as a result of such disclaimer the surviving spouse is entitled to receive such interest, then— "•(A) if the disclaimer of such interest is made by such person before the date prescribed for the filing of the estate tax return and if such person does not accept such interest before making the disclaimer, such interest shall, for purposes of this section, be considered as passing from the decedent to the surviving spouse, and " (B) if subparagraph (A) does not apply, such interest shall, for purposes of this section, be considered as passing, not to the surviving spouse, but to the person who made the disclaimer, in the same manner as if the disclaimer had not been made." (b) The amendment made by subsection (a) shall apply with respect to estates of decedents dying on or after the date of the enactment of this Act. (c) In the case of the estate of a decedent dying before the date of the enactment of this Act for which the date prescribed for the filing of the estate tax return (determined without regard to any extension of time for filing) occurs on or after January 1, 1965, if, under section 2056 of the Internal Revenue Code of 1954, an interest would, in the absence of a disclaimer by any person other than the surviving spouse, be considered as passing from the decedent to such person, and if a disclaimer of such interest is made by such person and as a result of such disclaimer the surviving spouse is entitled to receive such interest, then such interest shall, for purposes of such section, be considered as passing from the decedent to the surviving spouse, if— (1) the interest disclaimed was bequeathed or devised to such person, (2) before the date prescribed for the filing of the estate tax return such person disclaimed all bequests and devices under such will, and (3) such person did not accept any property under any such bequest or devise before making the disclaimer. The amount of the deductions allowable under section 2056 of such Code by reason of this subsection, when added to the amount of the deductions allowable under such section without regard to this subsection, shall not exceed the greater of (A) the amount of the deductions which would be allowable under such section without regard to the disclaimer if the surviving spouse elected to take against the will, or (B) an amount equal to one-third of the adjusted gross estate (within the meaning of subsection (c)(2) of such section). SEC. 2. (a) Section 642(g) of the Internal Revenue Code of 1954 (relating to disallowance of double deductions) is amended by insert-

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