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 law, any person can disclaim any interest in 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. However, another law or the governing document may restrict that right.
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 limit transfers. This law makes clear that those limits do not block a disclaimer. A person who does not want to receive trust property keeps the right to say no.
How to Make a Valid Disclaimer
A disclaimer must meet specific steps to be legally valid. It must be in writing, clearly state the disclaimer, and describe the interest or power being refused. The person must sign it and deliver or file it under 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 dollar amount, or any other measurable portion. Once delivered, the disclaimer is final and cannot be undone.
The date of death of the person who left the property often sets the timeline. As a result, working with a qualified professional before signing is important.