How Timing Works for Appointees
A power of appointment gives one person the authority to direct who receives certain property. If the holder of that power names you as an appointee and you do not want the property, you can disclaim it. The disclaimer takes effect as of the moment the instrument exercising the power becomes irrevocable.
A disclaimer of an interest in property by an appointee of a power of appointment takes effect as of the time the instrument by which the holder exercises the power becomes irrevocable.
A.R.S. § 14-10010(A)In practical terms, this means the law treats you as though you never received the property in the first place. The property then passes to whoever would be next in line under the terms of the instrument.
Default Takers and Objects of the Power
If you are named as a default taker or an object of a power of appointment, the timing rule is slightly different. Your disclaimer takes effect as of the time the instrument creating the power becomes irrevocable, not the instrument exercising it.
A disclaimer of an interest in property by an object or taker in default of an exercise of a power of appointment takes effect as of the time the instrument creating the power becomes irrevocable.
A.R.S. § 14-10010(B)This distinction matters because the effective date of a disclaimer can affect tax treatment, creditor claims, and who ultimately receives the property. Understanding which category you fall into helps determine the right timing for a disclaimer.
