Disclaimers — State Law Considerations (Portfolio 847)

Description

Bloomberg Tax Portfolio, Disclaimers — State Law Considerations, No. 847, presents a detailed study of the state law ramifications of disclaimers. This Portfolio describes the many nontax uses of disclaimers, including potential creditor avoidance and the correction of otherwise costly errors made in the drafting of wills and trusts.

A disclaimer is the refusal to accept a gratuitous transfer. If the rules are complied with, a disclaimant has not made a “transfer.” The disclaimant must follow the relevant state statute and case law requirements to ensure that he or she achieves the desired results. This Portfolio discusses the applicable state law, indicates the areas of uncertainty and warns of traps for the unwary in the nontax law of disclaimer.

This Portfolio may be cited as Cline, 847 T.M., Disclaimers — State Law Considerations.

Table of Contents

I. General
II. Disclaimer with Respect to Pre-1977 Transfers
III. The Qualified Disclaimer – 2518: Disclaimer with Respect to Post-1976 Transfers
IV. Uses of Disclaimer
V. Errors in Drafting and Use of Disclaimers, or in Failing to Use Disclaimers
VI. Conclusion