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
PL 89-621 (H.R.483), enacted 10/04/1966

872 
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 u s e 2056. 
AN ACT 
Applicability. 
68A Stat. 217. 
26 u s e 642. 
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 hy 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) B Y 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 re-
spect 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 sub-
section, shall not exceed the greater of (A) the amount of the deduc-
tions 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-
80 STAT. ] 
PUBLIC LAW 89-624-OCT. 4, 1966 
873 
ing "or of any other person" after "shall not be allowed as a deduction 
in computing the taxable income of the estate". 
(b) The amendment made by subsection (a) shall apply to taxable 
Applicability. 
years ending after the date of the enactment of this Act, but only with 
respect to amounts paid or incurred, and losses sustained, after such 
date. 
Approved October 4, 1966. 
Public Law 89-622 
AN A C T 
October 4, 1966 
To amend title 38 of the United States Code with respect to the basis on which 
[H. R. 5852] 
certain dependency and indemnity compensation will be computed. 
Deceased vet-
erans. 
Be it enacted, hy the Senate and House of Representatives 
of the 
United States of America in Congress assewMed^ That the first sen-
tence of subsection (d) of section 402 of title 38, United States Code, ""^BTSIC pay com 
is amended by striking out "was so serving in such rank within one putation. 
hundred and twenty days before death in the active military, naval, 
'^'^ ^*^*- ^^^ 
or air service or before last discharge or release from active duty 
under conditions other than dishonorable" and inserting in lieu 
thereof "any subsequent discharge or release from active duty was 
under conditions other than dishonorable". 
SEC. 2. The amendment made by this Act shall take effect on the 
first day of the second calendar month after the date of enactment of 
this Act. 
Approved October 4, 1966. 
Public Law 89-623 
AN A C T 
October 4, 1966 
To amend section 1822(a) of title 38, T'nited States Code, to extend the provisicms 
[H. R. 7850] 
for treble-damage actions to direct loan and insured loan cases. 
Veterans. 
Loans. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 1822 (a), 
title 38, United States Code, is amended by inserting immediately 
^2"s"at. 1214 
after "title," the following: "or made under section 1811 or 1818 of this 
title, or insured under section 1815 of this title,". 
AI^OT^^^S;^ 
SEC. 2. The amendment made by this Act shall be applicable only 72 st'at. 1212. 
to cases in which the offense occurs after date of enactment of this 
Act. 
Approved October 4, 1966. 
Public Law 89-624 
AN ACT 
October 4, 1966 
To amend the Act of September 2, 1964. 
[H. R. 9976] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That the Act of Reclamation 
September 2, 1964 (78 Stat. 808; 43 U.S.C. 945(a)), is amended to '''Rr/hts-of-way, 
read "Notwithstanding the existence of any reservation of right-of- compensation. 
way to the United States for canals under the Act of August 30, 1890 ^^ ^^^ '^'^^^^ 
(26 Stat. 371, 391; 43 U.S.C. 945), or any State statute, the Secretary 
of the Interior shall pay just compensation, including severance dam-