A new law combines disclaimer statutes to ease use for practitioners and the public.
Sponsored by Rep. Melissa Hortman (DFL-Brooklyn Park) and Sen. Linda Scheid (DFL-Brooklyn Park), supporters said it most frequently would be used for tax purposes.
Signed by Gov. Tim Pawlenty May 12, it takes effect Jan. 1, 2010.
There are two disclaimers currently on state books: one that handles them during lifetime and another for those that inherit property after someone dies.
The law also updates some rules in the disclaimer area.
A primary change is clarification that someone can disclaim an interest even if it is not within the nine-month limit normally required for tax purposes.
Other changes include: allowing disclaimers of future interests, allowing disclaimers of jointly held property, allowing a trustee to disclaim property that might be scheduled to be distributed to a trust, allowing disclaimers of powers of appointment and other powers someone might hold over another’s trust and eliminates the recording of disclaimers in district court.
Any disclaimer involving real estate would still need to comply with real estate recording statutes and recoding requirements.
HF2082/SF1810*/CH67