Well, I believe I read that in an IRS publication, but I can't find it now. After I posted that question here, I read two other posts in another forum as follows (Note for both posts: There are 5 siblings. Four of the five are filing disclaimers which will leave the entire estate to the fifth):
"Congress wrote in the 9 month limit for disclaimers because it wanted a national standard for what would count as a disclaimer for federal gift tax purposes rather than relying on state law, which would create 50 different rules for what is effective for a disclaimer. So the federal rule is that the disclaimer must work under state law but also imposes some additional requirements, in particular the nine month requirement. By the way, that nine month period was not chosen arbitrarily. It was chosen because nine months after death is also the deadline for the estate to file its estate tax return, and the estate would need to know what disclaimers are being made to prepare that return.
The effect of missing the nine month deadline here is that each beneficiary making the disclaimer is treated as making a gift to the fifth sibling in the amount of the value of the share of the property that is being transferred. It is exactly the same tax result that would occur if the four siblings did quit claim deeds rather than disclaimers."
Here is 2nd post:
"A, B, C, D, and E each have a 1/5 interest in the value of the property. When A, B, C, and D disclaim their inheritance, each 1/5 is a gift to E for IRS purposes. A, B, C, and D would each have to file a gift tax return showing the amount that each has gifted to E. "
Thank you for your help!
