REPORT TITLE:
Unif Disclaimr of Prop Interst


DESCRIPTION:
Adopts Uniform Disclaimer of Property Interests Act.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1982 
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO UNIFORM DISCLAIMER OF PROPERTY INTERESTS ACT.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The Hawaii Revised Statutes is amended by adding
 
 2 a new chapter to be appropriately designated and to read as
 
 3 follows:
 
 4                             "CHAPTER
 
 5           UNIFORM DISCLAIMER OF PROPERTY INTERESTS ACT
 
 6         -1  Short title.  This chapter may be cited as the
 
 7 "Uniform Disclaimer of Property Interests Act (1999)".
 
 8         -2  Definitions.  In this chapter:
 
 9      "Disclaimant" means the person to whom a disclaimed interest
 
10 or power would have passed had the disclaimer not been made.
 
11      "Disclaimed interest" means the interest that would have
 
12 passed to the disclaimant had the disclaimer not been made.
 
13      "Disclaimer" means the refusal to accept an interest in or
 
14 power over property.
 
15      "Fiduciary" means a personal representative, trustee, agent
 
16 acting under a power of attorney, or other person authorized to
 
17 act as a fiduciary with respect to the property of another
 
18 person.
 
19      "Jointly held property" means property held in the name of
 

 
Page 2                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1 two or more persons under an arrangement in which all holders
 
 2 have concurrent interests and under which the last surviving
 
 3 holder is entitled to the whole of the property.
 
 4      "Person" means an individual, corporation, business trust,
 
 5 estate, trust, partnership, limited liability company,
 
 6 association, joint venture, government; governmental subdivision,
 
 7 agency, or instrumentality; public corporation, or any other
 
 8 legal or commercial entity.
 
 9      "State" means a state of the United States, the District of
 
10 Columbia, Puerto Rico, the United States Virgin Islands, or any
 
11 territory or insular possession subject to the jurisdiction of
 
12 the United States.  The term includes an Indian tribe or band, or
 
13 Alaskan native village, recognized by federal law or formally
 
14 acknowledged by a state.
 
15      "Trust" means:
 
16      (A)  An express trust, charitable or noncharitable, with
 
17           additions thereto, whenever and however created; and
 
18      (B)  A trust created pursuant to a statute, judgment, or
 
19           decree which requires the trust to be administered in
 
20           the manner of an express trust.
 
21         -3  Scope.  This chapter applies to disclaimers of any
 
22 interest in or power over property, whenever created.
 
23         -4  Chapter supplemented by other law.(a)  Unless
 

 
Page 3                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1 displaced by a provision of this chapter, the principles of law
 
 2 and equity supplement this chapter.
 
 3      (b)  This chapter does not limit any right of a person to
 
 4 waive, release, disclaim, or renounce an interest in or power
 
 5 over property under a law other than this chapter.
 
 6         -5  Power to disclaim; general requirements; when
 
 7 irrevocable.(a)  A person may disclaim, in whole or part, any
 
 8 interest in or power over property, including a power of
 
 9 appointment.  A person may disclaim the interest or power even if
 
10 its creator imposed a spendthrift provision or similar
 
11 restriction on transfer or a restriction or limitation on the
 
12 right to disclaim.
 
13      (b)  Except to the extent a fiduciary's right to disclaim is
 
14 expressly restricted or limited by another statute of this State
 
15 or by the instrument creating the fiduciary relationship, a
 
16 fiduciary may disclaim, in whole or part, any interest in or
 
17 power over property, including a power of appointment, whether
 
18 acting in a personal or representative capacity.  A fiduciary may
 
19 disclaim the interest or power even if its creator imposed a
 
20 spendthrift provision or similar restriction on transfer or a
 
21 restriction or limitation on the right to disclaim, or an
 
22 instrument other than the instrument that created the fiduciary
 
23 relationship imposed a restriction or limitation on the right to
 

 
Page 4                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1 disclaim.
 
 2      (c)  To be effective, a disclaimer must be in a writing or
 
 3 other record, declare the disclaimer, describe the interest or
 
 4 power disclaimed, be signed by the person making the disclaimer,
 
 5 and be delivered or filed in the manner provided in section
 
 6    -12.  In this subsection, "record" means information that is
 
 7 inscribed on a tangible medium or that is stored in an electronic
 
 8 or other medium and is retrievable in perceivable form.
 
 9      (d)  A partial disclaimer may be expressed as a fraction,
 
10 percentage, monetary amount, term of years, limitation of a
 
11 power, or any other interest or estate in the property.
 
12      (e)  A disclaimer becomes irrevocable when it is delivered
 
13 or filed pursuant to section    -12 or when it becomes effective
 
14 as provided in sections    -6 through    -11, whichever occurs
 
15 later.
 
16      (f)  A disclaimer made under this chapter is not a transfer,
 
17 assignment, or release.
 
18         -6  Disclaimer of interest in property.(a)  In this
 
19 section:
 
20      (1)  "Time of distribution" means the time when a disclaimed
 
21           interest would have taken effect in possession or
 
22           enjoyment.
 
23      (2)  "Future interest" means an interest that takes effect
 

 
Page 5                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1           in possession or enjoyment, if at all, later than the
 
 2           time of its creation.
 
 3      (b)  Except for a disclaimer governed by section    -7 or
 
 4    -8, the following rules apply to a disclaimer of an interest
 
 5 in property:
 
 6      (1)  The disclaimer takes effect as of the time the
 
 7           instrument creating the interest becomes irrevocable,
 
 8           or, if the interest arose under the law of intestate
 
 9           succession, as of the time of the intestate's death.
 
10      (2)  The disclaimed interest passes according to any
 
11           provision in the instrument creating the interest
 
12           providing for the disposition of the interest, should
 
13           it be disclaimed, or of disclaimed interests in
 
14           general.
 
15      (3)  If the instrument does not contain a provision
 
16           described in paragraph (2), the following rules apply:
 
17           (A)  If the disclaimant is an individual, the
 
18                disclaimed interest passes as if the disclaimant
 
19                had died immediately before the time of
 
20                distribution.  However, if, by law or under the
 
21                instrument, the descendants of the disclaimant
 
22                would share in the disclaimed interest by any
 
23                method of representation had the disclaimant died
 

 
Page 6                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1                before the time of distribution, the disclaimed
 
 2                interest passes only to the descendants of the
 
 3                disclaimant who survive the time of distribution.
 
 4           (B)  If the disclaimant is not an individual, the
 
 5                disclaimed interest passes as if the disclaimant
 
 6                did not exist.
 
 7      (4)  Upon the disclaimer of a preceding interest, a future
 
 8           interest held by a person other than the disclaimant
 
 9           takes effect as if the disclaimant had died or ceased
 
10           to exist immediately before the time of distribution,
 
11           but a future interest held by the disclaimant is not
 
12           accelerated in possession or enjoyment. 
 
13         -7  Disclaimer of rights of survivorship in jointly held
 
14 property.(a)  Upon the death of a holder of jointly held
 
15 property, a surviving holder may disclaim, in whole or part, the
 
16 greater of:
 
17      (1)  A fractional share of the property determined by
 
18           dividing the number one by the number of joint holders
 
19           alive immediately before the death of the holder to
 
20           whose death the disclaimer relates; or
 
21      (2)  All of the property except that part of the value of
 
22           the entire interest attributable to the contribution
 
23           furnished by the disclaimant.
 

 
Page 7                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1      (b)  A disclaimer under subsection (a) takes effect as of
 
 2 the death of the holder of jointly held property to whose death
 
 3 the disclaimer relates.
 
 4      (c)  An interest in jointly held property disclaimed by a
 
 5 surviving holder of the property passes as if the disclaimant
 
 6 predeceased the holder to whose death the disclaimer relates.
 
 7         -8  Disclaimer of interest by trustee.  If a trustee
 
 8 disclaims an interest in property that otherwise would have
 
 9 become trust property, the interest does not become trust
 
10 property.
 
11         -9  Disclaimer of power of appointment or other power
 
12 not held in fiduciary capacity.  If a holder disclaims a power of
 
13 appointment or other power not held in a fiduciary capacity, the
 
14 following rules apply:
 
15      (1)  If the holder has not exercised the power, the
 
16           disclaimer takes effect as of the time the instrument
 
17           creating the power becomes irrevocable.
 
18      (2)  If the holder has exercised the power and the
 
19           disclaimer is of a power other than a presently
 
20           exercisable general power of appointment, the
 
21           disclaimer takes effect immediately after the last
 
22           exercise of the power.
 
23      (3)  The instrument creating the power is construed as if
 

 
Page 8                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1           the power expired when the disclaimer became effective.
 
 2         -10  Disclaimer by appointee, object, or taker in
 
 3 default of exercise of power of appointment.(a)  A disclaimer
 
 4 of an interest in property by an appointee of a power of
 
 5 appointment takes effect as of the time the instrument by which
 
 6 the holder exercises the power becomes irrevocable.
 
 7      (b)  A disclaimer of an interest in property by an object or
 
 8 taker in default of an exercise of a power of appointment takes
 
 9 effect as of the time the instrument creating the power becomes
 
10 irrevocable.
 
11         -11  Disclaimer of power held in fiduciary capacity.
 
12 (a)  If a fiduciary disclaims a power held in a fiduciary
 
13 capacity which has not been exercised, the disclaimer takes
 
14 effect as of the time the instrument creating the power becomes
 
15 irrevocable.
 
16      (b)  If a fiduciary disclaims a power held in a fiduciary
 
17 capacity which has been exercised, the disclaimer takes effect
 
18 immediately after the last exercise of the power.
 
19      (c)  A disclaimer under this section is effective as to
 
20 another fiduciary if the disclaimer so provides and the fiduciary
 
21 disclaiming has the authority to bind the estate, trust, or other
 
22 person for whom the fiduciary is acting.
 
23         -12  Delivery or filing.(a)  In this section,
 

 
Page 9                                                     1982
                                     H.B. NO.           
                                                        
                                                        

 
 1 "beneficiary designation" means an instrument, other than an
 
 2 instrument creating a trust, naming the beneficiary of:
 
 3      (1)  An annuity or insurance policy;
 
 4      (2)  An account with a designation for payment on death;
 
 5      (3)  A security registered in beneficiary form;
 
 6      (4)  A pension, profit-sharing, retirement, or other
 
 7           employment-related benefit plan; or
 
 8      (5)  Any other nonprobate transfer at death.
 
 9      (b)  Subject to subsections (c) through (l), delivery of a
 
10 disclaimer may be effected by personal delivery, first-class
 
11 mail, or any other method likely to result in its receipt.
 
12      (c)  In the case of an interest created under the law of
 
13 intestate succession or an interest created by will, other than
 
14 an interest in a testamentary trust:
 
15      (1)  A disclaimer must be delivered to the personal
 
16           representative of the decedent's estate; or
 
17      (2)  If no personal representative is then serving, it must
 
18           be filed with a court having jurisdiction to appoint
 
19           the personal representative.
 
20      (d)  In the case of an interest in a testamentary trust:
 
21      (1)  A disclaimer must be delivered to the trustee then
 
22           serving, or if no trustee is then serving, to the
 
23           personal representative of the decedent's estate; or
 

 
Page 10                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1      (2)  If no personal representative is then serving, it must
 
 2           be filed with a court having jurisdiction to enforce
 
 3           the trust.
 
 4      (e)  In the case of an interest in an inter vivos trust:
 
 5      (1)  A disclaimer must be delivered to the trustee then
 
 6           serving;
 
 7      (2)  If no trustee is then serving, it must be filed with a
 
 8           court having jurisdiction to enforce the trust; or
 
 9      (3)  If the disclaimer is made before the time the
 
10           instrument creating the trust becomes irrevocable, it
 
11           must be delivered to the settlor of a revocable trust
 
12           or the transferor of the interest.
 
13      (f)  In the case of an interest created by a beneficiary
 
14 designation made before the time the designation becomes
 
15 irrevocable, a disclaimer must be delivered to the person making
 
16 the beneficiary designation.
 
17      (g)  In the case of an interest created by a beneficiary
 
18 designation made after the time the designation becomes
 
19 irrevocable, a disclaimer must be delivered to the person
 
20 obligated to distribute the interest.
 
21      (h)  In the case of a disclaimer by a surviving holder of
 
22 jointly held property, the disclaimer must be delivered to the
 
23 person to whom the disclaimed interest passes.
 

 
Page 11                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1      (i)  In the case of a disclaimer by an object or taker in
 
 2 default of exercise of a power of appointment at any time after
 
 3 the power was created:
 
 4      (1)  The disclaimer must be delivered to the holder of the
 
 5           power or to the fiduciary acting under the instrument
 
 6           that created the power; or
 
 7      (2)  If no fiduciary is then serving, it must be filed with
 
 8           a court having authority to appoint the fiduciary.
 
 9      (j)  In the case of a disclaimer by an appointee of a
 
10 nonfiduciary power of appointment:
 
11      (1)  The disclaimer must be delivered to the holder, the
 
12           personal representative of the holder's estate or to
 
13           the fiduciary under the instrument that created the
 
14           power; or
 
15      (2)  If no fiduciary is then serving, it must be filed with
 
16           a court having authority to appoint the fiduciary.
 
17      (k)  In the case of a disclaimer by a fiduciary of a power
 
18 over a trust or estate, the disclaimer must be delivered as
 
19 provided in subsection (c), (d), or (e), as if the power
 
20 disclaimed were an interest in property.
 
21      (l)  In the case of a disclaimer of a power by an agent, the
 
22 disclaimer must be delivered to the principal or the principal's
 
23 representative.
 

 
Page 12                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1         -13  When disclaimer barred or limited.  (a)  A
 
 2 disclaimer is barred by a written waiver of the right to
 
 3 disclaim.
 
 4      (b)  A disclaimer of an interest in property is barred if
 
 5 any of the following events occur before the disclaimer becomes
 
 6 effective:
 
 7      (1)  The disclaimant accepts the interest sought to be
 
 8           disclaimed;
 
 9      (2)  The disclaimant voluntarily assigns, conveys,
 
10           encumbers, pledges, or transfers the interest sought to
 
11           be disclaimed or contracts to do so; or
 
12      (3)  A judicial sale of the interest sought to be disclaimed
 
13           occurs.
 
14      (c)  A disclaimer, in whole or part, of the future exercise
 
15 of a power held in a fiduciary capacity is not barred by its
 
16 previous exercise.
 
17      (d)  A disclaimer, in whole or part, of the future exercise
 
18 of a power not held in a fiduciary capacity is not barred by its
 
19 previous exercise unless the power is exercisable in favor of the
 
20 disclaimant.
 
21      (e)  A disclaimer is barred or limited if so provided by law
 
22 other than this chapter.
 
23      (f)  A disclaimer of a power over property which is barred
 

 
Page 13                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1 by this section is ineffective.  A disclaimer of an interest in
 
 2 property which is barred by this section takes effect as a
 
 3 transfer of the interest disclaimed to the persons who would have
 
 4 taken the interest under this chapter had the disclaimer not been
 
 5 barred.
 
 6         -14  Tax qualified disclaimer.  Notwithstanding any
 
 7 other provision of this chapter, if as a result of a disclaimer
 
 8 or transfer the disclaimed or transferred interest is treated
 
 9 pursuant to the provisions of Title 26 of the United States Code,
 
10 as now or hereafter amended, or any successor statute thereto,
 
11 and the regulations promulgated thereunder, as never having been
 
12 transferred to the disclaimant, then the disclaimer or transfer
 
13 is effective as a disclaimer under this chapter.
 
14         -15  Recording of disclaimer.  If an instrument
 
15 transferring an interest in or power over property subject to a
 
16 disclaimer is required or permitted by law to be filed, recorded,
 
17 or registered, the disclaimer may be so filed, recorded, or
 
18 registered.  Failure to file, record, or register the disclaimer
 
19 does not affect its validity as between the disclaimant and
 
20 persons to whom the property interest or power passes by reason
 
21 of the disclaimer.
 
22         -16  Application to existing relationships.  Except as
 
23 otherwise provided in section    -13, an interest in or power
 

 
Page 14                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1 over property existing on the effective date of this chapter as
 
 2 to which the time for delivering or filing a disclaimer under law
 
 3 superseded by this chapter has not expired may be disclaimed
 
 4 after the effective date of this chapter."
 
 5      SECTION 2.  Section 553A-18, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (a) to read as follows:
 
 7      "(a)  A person nominated under section 553A-3 or designated
 
 8 under section 553A-9 as custodian may decline to serve by
 
 9 delivering a valid renunciation pursuant to [section 560:2-801]
 
10 chapter     to the person who made the nomination or to the
 
11 transferor or the transferor's legal representative.  If the
 
12 event giving rise to a transfer has not occurred and no
 
13 substitute custodian able, willing, and eligible to serve was
 
14 nominated under section 553A-3, the person who made the
 
15 nomination may nominate a substitute custodian under section
 
16 553A-3; otherwise the transferor or the transferor's legal
 
17 representative shall designate a substitute custodian at the time
 
18 of the transfer, in either case from among the persons eligible
 
19 to serve as custodian for that kind of property under section
 
20 553A-9(a).  The custodian so designated has the rights of a
 
21 successor custodian."
 
22      SECTION 3.  Section 560:2-801, Hawaii Revised Statutes, is
 
23 repealed.
 

 
Page 15                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1      ["560:2-801  Disclaimer of property interests.(a)  Right
 
 2 to disclaim interest in property.  A person, or the
 
 3 representative of a person, to whom an interest in or with
 
 4 respect to property or an interest therein devolves by whatever
 
 5 means may disclaim it in whole or in part by delivering or filing
 
 6 a written disclaimer under this section.  The right to disclaim
 
 7 exists notwithstanding:
 
 8      (1)  Any limitation on the interest of the disclaimant in
 
 9           the nature of a spendthrift provision or similar
 
10           restriction; or
 
11      (2)  Any restriction or limitation on the right to disclaim
 
12           contained in the governing instrument.
 
13      For purposes of this subsection, the "representative of a
 
14 person" includes a personal representative of a decedent, a
 
15 conservator of a disabled person, a guardian of a minor or
 
16 incapacitated person, and an agent acting on behalf of the person
 
17 within the authority of a power of attorney.
 
18      (b)  Time of disclaimer.  The following rules govern the
 
19 time when a disclaimer must be filed or delivered:
 
20      (1)  If the property or interest has devolved to the
 
21           disclaimant under a testamentary instrument or by the
 
22           laws of intestacy, the disclaimer must be filed, if of
 
23           a present interest, not later than nine months after
 

 
Page 16                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1           the death of the deceased owner or deceased donee of a
 
 2           power of appointment and, if of a future interest, not
 
 3           later than nine months after the event determining that
 
 4           the taker of the property or interest is finally
 
 5           ascertained and the taker's interest is indefeasibly
 
 6           vested.  The disclaimer must be filed in the probate
 
 7           court of the judicial circuit in which proceedings for
 
 8           the administration of the estate of the deceased owner
 
 9           or deceased donee of the power have been commenced.  A
 
10           copy of the disclaimer must be delivered in person or
 
11           mailed by registered or certified mail, return receipt
 
12           requested, to any personal representative or other
 
13           fiduciary of the decedent or donee of the power;
 
14      (2)  If a property or interest has devolved to the
 
15           disclaimant under a nontestamentary instrument or
 
16           contract, the disclaimer must be delivered or filed, if
 
17           of a present interest, not later than nine months after
 
18           the effective date of the nontestamentary instrument or
 
19           contract and, if of a future interest, not later than
 
20           nine months after the event determining that the taker
 
21           of the property or interest is finally ascertained and
 
22           the taker's interest is indefeasibly vested.  If the
 
23           person entitled to disclaim does not know of the
 

 
Page 17                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1           existence of the interest, the disclaimer must be
 
 2           delivered or filed not later than nine months after the
 
 3           person learns of the existence of the interest.  The
 
 4           effective date of a revocable instrument or contract is
 
 5           the date on which the maker no longer has power to
 
 6           revoke it or to transfer to the maker's self or another
 
 7           the entire legal and equitable ownership of the
 
 8           interest.  The disclaimer or a copy thereof must be
 
 9           delivered in person or mailed by registered or
 
10           certified mail, return receipt requested, to the person
 
11           who has legal title to or possession of the interest
 
12           disclaimed;
 
13      (3)  A surviving joint tenant or tenant by the entireties
 
14           may disclaim as a separate interest any property or
 
15           interest therein devolving to the tenant by right of
 
16           survivorship.  A surviving joint tenant or tenant by
 
17           the entireties may disclaim the entire interest in any
 
18           property or interest therein that is the subject of a
 
19           joint tenancy or tenancy by the entireties devolving to
 
20           that tenant, if the joint tenancy or tenancy by the
 
21           entireties was created by act of a deceased joint
 
22           tenant or tenant by the entireties, the survivor did
 
23           not join in creating the joint tenancy or tenancy by
 

 
Page 18                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1           the entireties, and has not accepted a benefit under
 
 2           it;
 
 3      (4)  If real property or an interest therein is disclaimed,
 
 4           a copy of the disclaimer may be recorded in the office
 
 5           of the bureau of conveyances of the county in which the
 
 6           property or interest disclaimed is located and in the
 
 7           land court, if applicable.
 
 8      (c)  Form of disclaimer.  The disclaimer must:
 
 9      (1)  Describe the property or interest disclaimed;
 
10      (2)  Declare the disclaimer and extent thereof;
 
11      (3)  Be signed by the disclaimant.
 
12      (d)  Effect of disclaimer.  The effects of a disclaimer are:
 
13      (1)  If property or an interest therein devolves to a
 
14           disclaimant under a testamentary instrument, under a
 
15           power of appointment exercised by a testamentary
 
16           instrument, or under the laws of intestacy, and the
 
17           decedent has not provided for another disposition of
 
18           that interest, should it be disclaimed, or of
 
19           disclaimed or failed interests in general, the
 
20           disclaimed interest devolves as if the disclaimant had
 
21           predeceased the decedent, but if by law or under the
 
22           testamentary instrument the descendants of the
 
23           disclaimant would share in the disclaimed interest by
 

 
Page 19                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1           representation or otherwise were the disclaimant to
 
 2           predecease the decedent, then the disclaimed interest
 
 3           passes by representation, or passes as directed by the
 
 4           governing instrument, to the descendants of the
 
 5           disclaimant who survive the decedent.  A future
 
 6           interest that takes effect in possession or enjoyment
 
 7           after the termination of the estate or interest
 
 8           disclaimed takes effect as if the disclaimant had
 
 9           predeceased the decedent.  A disclaimer relates back
 
10           for all purposes to the date of death of the decedent;
 
11      (2)  If property or an interest therein devolves to a
 
12           disclaimant under a nontestamentary instrument or
 
13           contract and the instrument or contract does not
 
14           provide for another disposition of that interest,
 
15           should it be disclaimed, or of disclaimed or failed
 
16           interests in general, the disclaimed interest devolves
 
17           as if the disclaimant had predeceased the effective
 
18           date of the instrument or contract, but if by law or
 
19           under the nontestamentary instrument or contract the
 
20           descendants of the disclaimant would share in the
 
21           disclaimed interest by representation or otherwise were
 
22           the disclaimant to predecease the effective date of the
 
23           instrument, then the disclaimed interest passes by
 

 
Page 20                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1           representation, or passes as directed by the governing
 
 2           instrument, to the descendants of the disclaimant who
 
 3           survive the effective date of the instrument.  A
 
 4           disclaimer relates back for all purposes to that date.
 
 5           A future interest that takes effect in possession or
 
 6           enjoyment at or after the termination of the disclaimed
 
 7           interest takes effect as if the disclaimant had died
 
 8           before the effective date of the instrument or contract
 
 9           that transferred the disclaimed interest; and
 
10      (3)  The disclaimer or the written waiver of the right to
 
11           disclaim is binding upon the disclaimant or person
 
12           waiving and all persons claiming through or under
 
13           either of them.
 
14      (e)  Waiver and bar.  The right to disclaim property or an
 
15 interest therein is barred by:
 
16      (1)  An assignment, conveyance, encumbrance, pledge, or
 
17           transfer of the property or interest, or a contract
 
18           therefor;
 
19      (2)  A written waiver of the right to disclaim;
 
20      (3)  An acceptance of the property or interest or a benefit
 
21           under it; or
 
22      (4)  A sale of the property or interest under judicial sale
 
23           made before the disclaimer is made.
 

 
Page 21                                                    1982
                                     H.B. NO.           
                                                        
                                                        

 
 1      (f)  Remedy not exclusive.  This section does not abridge
 
 2 the right of a person to waive, release, disclaim, or renounce
 
 3 property or an interest therein under any other statute.
 
 4      (g)  Application.  An interest in property that exists on
 
 5 January 1, 1997 as to which, if a present interest, the time for
 
 6 filing a disclaimer under this section has not expired or, if a
 
 7 future interest, the interest has not become indefeasibly vested
 
 8 or the taker finally ascertained, may be disclaimed within nine
 
 9 months after January 1, 1997."]
 
10      SECTION 4.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 5.  This Act shall take effect on July 1, 2000.
 
13 
 
14                              INTRODUCED BY:______________________