Citation. Drye v. United States, 528 U.S. 49, 120 S. Ct. 474, 145 L. Ed. 2d 466, 1999 U.S. LEXIS 8238, 99-2 U.S. Tax Cas. (CCH) P51,006, 84 A.F.T.R.2d (RIA) 7160, 99 Cal. Daily Op. Service 9587, 99 Daily Journal DAR 12339, 1999 Colo. J. C.A.R. 6506, 13 Fla. L. Weekly Fed. S 9 (U.S. Dec. 7, 1999)
Brief Fact Summary. Appellant seeks to have the court find that when he disclaimed the inheritance from his mother’s estate it was effective to pass the inheritance on to his daughter free from the federal tax lien.
Synopsis of Rule of Law. Where one has the power to channel an estate’s assets, it warrants the conclusion that they hold property or a property right that is subject to government’s liens.
Held. The control rein appellant held under state law rendered the inheritance “property” or “rights to property” belonging to him within the meaning of federal law, and thus is subject to the federal tax liens.
Discussion. The disclaiming heir inevitably exercises dominion over the property, as they determine who will and will not receive the property.