Renunciation And Disclaimer of Property from Life Insurance or Annuity Contract
Disclaimer of Property Interest-Pennsylvania
Pennsylvania Statutes
TITLE 20 DECEDENTS, ESTATES AND FIDUCIARIES
CHAPTER 62 DISCLAIMERS
Right to disclaim
A person to whom an interest in property would
have devolved by whatever means, including a beneficiary under a will,
an appointee under the exercise of a power of appointment, a person entitled
to take by intestacy, a joint tenant with right of survivorship, a donee
of an inter vivos transfer, a donee under a third-party beneficiary contract
(including beneficiaries of life insurance and annuity policies and pension,
profit-sharing and other employee benefit plans), and a person entitled
to a disclaimed interest, may disclaim it in whole or in part by a written
disclaimer which shall:
The right to disclaim shall exist notwithstanding
any limitation on the interest in the nature of a spendthrift provision
or similar restriction.
Title 20, Chap. 62, §6201.
Disclaimers by fiduciaries or agents
A disclaimer on behalf of a decedent, a minor
or an incapacitated person may be made by his personal representative,
the guardian of his estate or in the case of an incapacitated person who
executed a power of attorney which confers the authority to disclaim upon
his agent and which qualifies as a durable power of attorney under section
5604 (relating to durable powers of attorney) by such agent, if, in each
case, the court having jurisdiction of the estate authorizes the disclaimer
after finding that it is advisable and will not materially prejudice the
rights of creditors, heirs or beneficiaries of the decedent, the minor
or his creditors, or the incapacitated person or his creditors, as the
case may be. A personal representative may make a disclaimer on behalf
of his decedent without court authorization if the will of the decedent
so authorizes him.
Title 20, Chap. 62, §6202.
Interests subject to disclaimer
A disclaimer in whole or in part may be made
of any present or future interest, vested or contingent, including a possible
future right to take as an appointee under an unexercised power of appointment
or under a discretionary power to distribute income or principal.
Title 20, Chap. 62, §6203.
Filing, delivery and recording
(a) Will or intestacy. - If the interest would have
devolved to the disclaimant by will or by intestacy, the disclaimer shall
be filed with the clerk of the orphans' court division of the county where
the decedent died domiciled or, if the decedent was not domiciled in this
Commonwealth, of the county where the property involved is located, and
a copy of the disclaimer shall be delivered to any personal representative,
trustee or other fiduciary in possession of the property.
(b) Inter vivos transfers. - If the interest would have devolved
to the disclaimant by an inter vivos instrument, the disclaimer or a copy
thereof shall be delivered to the trustee or other person having legal
title to or possession of the property or interest disclaimed or who is
entitled thereto by reason of the disclaimer.
(b.1) Third-party disclaimer. - If the interest would have
devolved to the disclaimant by a third-party beneficiary contract (including
life insurance and annuity policies and pension, profit-sharing and other
employee benefit plans), the disclaimer or copy thereof shall be delivered
to the insurance company, employer or other obligor, as the case may be,
and to the person who is entitled to the interest by reason of the disclaimer.
(c) Powers of appointment. - If the interest would have devolved
to the disclaimant by reason of the exercise of a power of appointment,
the disclaimer or a copy thereof shall be filed or delivered as required
by the above provisions if the donor of the power is regarded as the donor
of the interest or if the person who exercised the power is regarded as
the donor of the interest.
(d) Real estate. - If an interest in real property is disclaimed,
a copy of the disclaimer may be recorded in the office for the recording
of deeds of the county where the real estate is situated and it shall not
be effective as to a bona fide grantee or holder of a lien against the
property who has given value therefor before the disclaimer is so recorded.
Title 20, Chap. 62, §6204.
Effect of disclaimer
(a) In general. - A disclaimer relates back for
all purposes to the date of the death of the decedent or the effective
date of the inter vivos transfer or third-party beneficiary contract as
the case may be. The disclaimer shall be binding upon the disclaimant and
all persons claiming through or under him.
(b) Rights of other parties. - Unless a testator or donor
has provided for another disposition, the disclaimer shall, for purposes
of determining the rights of other parties, be equivalent to the disclaimant's
having died before the decedent in the case of a devolution by will or
intestacy or before the effective date of an inter vivos transfer or third-party
beneficiary contract, except that, when applying section 2104(1) (relating
to rules of succession) or analogous provisions of a governing instrument,
the fact that the disclaimant actually survived shall be recognized in
determining whether other parties take equally or by representation, and
except that if, as a result of a disclaimer, property passes to a fund
in which the disclaimant has an interest or power which he has not disclaimed, the
disclaimant shall retain his interest or power in the fund as augmented
by the disclaimed property.
(c) Powers of appointment. - In applying this section to
an interest that would have devolved by reason of the exercise of a power
of appointment, the person exercising the power shall be regarded as the
decedent or transferor, as the case may be.
Title 20, Chap. 62, §6205.
Bar to disclaimer
(a) Acceptance. - A disclaimer may be made at any
time before acceptance. An acceptance may be express or may be inferred
from actions of the person entitled to receive an interest in property
such as the following:
(3) An assignment, conveyance, encumbrance, pledge or other transfer
of the interest or a contract to do so.
(4) A representation that the interest has been or will be accepted
to a person who relies thereon to his detriment.
To constitute a bar to a disclaimer, a prior acceptance
must be affirmatively proved. The mere lapse of time, with or without knowledge
of the interest on the part of the disclaimant, shall not constitute an
acceptance.
(b) Partial acceptance within six months. - The
acceptance of part of a single interest shall be considered as only a partial
acceptance and will not be a bar to a subsequent disclaimer of any part
or all of the balance of the interest if the part of the interest is accepted
before the expiration of six months from:
(1) the death of the decedent in the case of an interest
that would have devolved by will or intestacy; or
(2) the effective date of the transfer in the case of an interest
that would have devolved by an inter vivos transfer or third-party beneficiary
contract.
In applying this subsection to an interest that
would have devolved by reason of the exercise of a power of appointment,
the person exercising the power shall be regarded as the decedent or the
transferor, as the case may be.
(c) Partial acceptance after six months. - The acceptance
of a part of a single interest after the expiration of such six-month period
shall be considered an acceptance of the entire interest and a bar to any
subsequent disclaimer thereof but shall not be an acceptance of any separate
interest given under the same instrument. In construing this subsection:
(1) income for life or any other period shall be considered
a single interest but separate from any interest in the principal or any
additional interest in income to take effect upon the happening of a future
event; and
(2) an interest in periodic payments to be made from principal or
income, or both, for the life of the beneficiary or any other period shall
be considered a single interest but separate from any additional payments
to be made upon the happening of a future event.
Title 20, Chap. 62, §6206.
Other statutes
The provisions of this chapter do not abridge
the right of a person to disclaim interests under any other statute and
do not affect any additional requirements for a disclaimer to be effective
for inheritance tax purposes or other purposes covered specifically in
other statutory provisions.
Title 20, Chap. 62, §6207.
