Who Can Disclaim and What Can Be Disclaimed
A disclaimer is a formal refusal of property or a power that would otherwise pass to you. Under this statute, the right to disclaim is broad. Any person can disclaim any interest in or power over property, including a power of appointment. A fiduciary, such as a personal representative or trustee, may also disclaim on behalf of an estate or trust, unless another statute or the governing instrument expressly restricts that authority.
A person may disclaim, in whole or in part, any interest in or power over property, including a power of appointment. A person may disclaim the interest or power even if its creator imposed a spendthrift provision or similar restriction on transfer or a restriction or limitation on the right to disclaim.
A.R.S. § 14-10005(A)This matters because some trust documents include spendthrift clauses that restrict a beneficiary's ability to transfer their interest. This statute makes clear that those restrictions do not prevent a disclaimer. A beneficiary who does not want to receive trust property, whether for tax planning, creditor concerns, or personal reasons, retains the right to say no.
How to Make a Valid Disclaimer
Arizona imposes specific requirements for a disclaimer to be legally effective. It must be in a writing or other record, clearly declare the disclaimer, describe the interest or power being disclaimed, be signed, and be delivered or filed according to the procedures in A.R.S. 14-10012.
A disclaimer becomes irrevocable when it is delivered or filed pursuant to section 14-10012 or when it becomes effective as provided in sections 14-10006 through 14-10011, whichever occurs later.
A.R.S. § 14-10005(E)A partial disclaimer is allowed. You can disclaim a fraction, a percentage, a dollar amount, a term of years, or any other measurable portion of an interest. And once delivered, the disclaimer is permanent. There is no way to take it back. That is why working with qualified counsel before signing a disclaimer is important.
