University:
Concordia University Wisconsin
Course:
JPP 3020 | Administrative Law
Academic year:

2020
Views:

420

Pages:

2
Author:

Carissa Thomas

Trust and Estates Notes Spring 2020 EPTL 2-1.11. Renunciation of property interests. ¥ (a) A renunciation made in compliance with this statute shall not necessarily constitute a qualified disclaimer for tax purposes ¥ (b) For purpose of this section: o (1) ÒDispositionÓ = disposition created under a will, trust agreement, power of appointment, intestacy (distributive share), transfer by Totten trust, life insurance or annuity K, transfer created by joint tenancy or tenancy by entirety, transfer under employee benefit plan, transfer of a security, any other testamentary or non-testamentary instrument ▪ so you can basically renounce anything o (2) HAVE 9 MONTHS TO RENOUNCE from the Òeffective date of the disposition,Ó which is as follows: ▪ A) If the disposition is created by will (DOD of testator): ¥ Interest under will ! Date of Death (DOD) of testator ¥ Interest in under a testamentary trust ! DOD of testator ¥ Joint interest in joint property ! DOD of joint tenant ¥ Interest in life insurance ! DOD of the insured ¥ Interest in a pension or retirement plan ! DOD of employee ¥ Interest in Totten trust ! DOD of decedent ¥ Interest created by a testamentary of appointment ! DOD of the holder of the power ¥ Interest obtained in default of someoneÕs exercise of a testamentary power of appointment ! DOD of the power holder ▪ B) If the disposition is created by a trust agreement (date of trust agreement): ¥ Interest created by a presently exercisable power of appointment ! date the power is exercised ¥ An interest acquired because someone else renounces ! the date of the renunciation ¥ An interest in a lifetime trust (refers to a present interest) ! date the trust became irrevocable (date of creation if it was irrevocable when made) ▪ C) If the disposition is created by any other testamentary or non-testamentary instrument (date of event by which beneficiary is ascertained): ¥ Interest obtained in default of someoneÕs exercise of a power of appointment presently exercisable ! date the default taker is entitled to the property ▪ Notwithstanding the foregoing, a future interest in a trust ! the date it comes possessory ¥ (c) Formalities of Renouncement o (1) Any beneficiary may renounce all or part of his interest (but a joint tenant or tenant by the entirety may NOT renounce the portion of the interest which he holds with decedent). o (2) Effective renunciation MUST be: ▪ In writing ▪ Sign & acknowledged by renouncing party ▪ Filed in office of clerk of the ct with jurisdiction within 9 months after the effective date of disposition. ¥ NOTE: Court has discretion to extend time to file and serve if reasonable cause exists ▪ Accompanied by an affidavit of renouncing party that he did not receive and will not receive any consideration to renounce from others whose interests would be accelerated ¥ Ex of what would NOT BE ALLOWED: G makes a trust, income to A, remainder to B. A agrees to renounce her interest in exchange for $25k from B. ▪ Notice must be served to person in charge of property

Trust and Estates Notes

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