UNITED STATES SUPREME COURT DECISIONS ON-LINE

JEWETT V. COMMISSIONER, 455 U. S. 305 (1982)

455 U. S. 305

U.S. Supreme Court

Jewett v. Commissioner, 455 U.S. 305 (1982)

Jewett v. Commissioner, 455 U.S. 305 (1982)

No. 80-1614

Argued December 1, 1981

Decided February 23, 1982

455 U.S. 305

Syllabus

Held: The "transfer" referred to in the Treasury Regulation excepting from the federal gift tax a refusal to accept ownership of an interest in property transferred by will if such refusal is effective under local law and made "within a reasonable time after knowledge of the existence of the transfer," occurs, as indicated by both the text and history of the Regulation, when the interest is created, and not at a later time when the interest either vests or becomes possessory. Hence, in this case, where disclaimers of a contingent interest in a testamentary trust, though effective under local law, were not made until 33 years, and thus not "within a reasonable time," after the interest was created, the disclaimers were subject to a gift tax under §§ 2501(a)(1) and 2511(a) of the Internal Revenue Code, as indirect gifts to a successor in interest. Pp. 455 U. S. 309-919.

638 F.2d 93, affirmed.

STEVENS, J., delivered the opinion of the Court, in which BURGER, C.J.,and BRENNAN, WHITE, MARSHALL, and POWELL, JJ., joined. BLACKMUN, J., filed a dissenting opinion, in which REHNQUIST and O'CONNOR, JJ., joined, post, p. 455 U. S. 319. clubjuris

Page 455 U. S. 306


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