Wills and Estates – Disclaimer of Property Interest – Arizona

Disclaimer of property interest; requirements; effect

A. If by any means an interest in property or with respect to property devolves to a person, that person or that person’s representative may disclaim that interest in whole or in part by delivering or filing a written disclaimer under this section. This right exists notwithstanding any limitation on the interest of the disclaimant in the nature of a spendthrift provision or similar restriction or any restriction or limitation on the right to disclaim contained in the governing instrument. For purposes of this subsection, “representative” includes a personal representative of a decedent, a conservator of a protected person, a guardian of a minor or incapacitated person and an agent acting on behalf of the person within the authority of a power of attorney.

B. If the property or interest has devolved to the disclaimant under a testamentary instrument or by the laws of intestacy and is of a present interest, the disclaimer must be filed not later than nine months after the death of the deceased owner or deceased donee of a power of appointment. If that property or interest is of a future interest, the disclaimer must be filed not later than nine months after the event that determines that the taker of the property or interest is finally ascertained and the interest is indefeasibly vested. The disclaimer must be filed in the court in the county in which proceedings for the administration of the estate of the deceased owner or deceased donee of the power have been commenced. A copy of the disclaimer must be delivered in person or mailed by certified mail, return receipt requested, to any personal representative or other fiduciary of the decedent or donee of the power.

C. If a property or interest has devolved to the disclaimant under a nontestamentary instrument or contract and is of a present interest the disclaimer shall be filed not later than nine months after the effective date of the nontestamentary instrument or contract. If the property or interest is of a future interest the disclaimer must be filed not later than nine months after the event that determines that the taker of the property or interest is finally ascertained and the taker’s interest is indefeasibly vested. If the person entitled to disclaim does not know of the existence of the interest, the disclaimer must be delivered or filed not later than nine months after the person learns of the existence of the interest. The effective date of a revocable instrument or contract is the date on which the maker no longer has power to revoke it or to transfer to the maker or another the entire legal and equitable ownership of the interest. The disclaimer or a copy of the disclaimer must be delivered in person or mailed by certified mail, return receipt requested, to the person who has legal title to or possession of the interest disclaimed.

D. A surviving joint tenant may disclaim as a separate interest any property or an interest in that property that devolves to that joint tenant by right of survivorship. A surviving joint tenant may disclaim the entire interest in any property or an interest in that property that is the subject of a joint tenancy devolving to that joint tenant, if the joint tenancy was created by act of a deceased joint tenant, the survivor did not join in creating the joint tenancy and the survivor has not accepted a benefit under it.

E. If real property or an interest in that property is disclaimed, a copy of the disclaimer may be recorded in the office of the county recorder of the county in which the property or interest disclaimed is located.

F. The disclaimer shall describe the property or interest disclaimed, declare the disclaimer and its extent and be signed by the disclaimant.

G. If property or an interest in that property devolves to a disclaimant under a testamentary instrument, under a power of appointment exercised by a testamentary instrument or under the laws of intestacy and the decedent has not provided for another disposition of that interest, should it be disclaimed, or of disclaimed or failed interests in general, the disclaimed interest devolves as if the disclaimant had predeceased the decedent. However, if by law or under the testamentary instrument the descendants of the disclaimant would share in the disclaimed interest by representation or otherwise if the disclaimant were to predecease the decedent, the disclaimed interest then passes by representation or as directed by the governing instrument to the descendants of the disclaimant who survive the decedent. A future interest that takes effect in possession or enjoyment after the termination of the estate or interest disclaimed takes effect as if the disclaimant had predeceased the decedent. A disclaimer relates back for all purposes to the date of death of the decedent.

H. If property or an interest in property devolves to a disclaimant under a nontestamentary instrument or contract and the instrument or contract does not provide for another disposition of that interest, should it be disclaimed, or of disclaimed or failed interests in general, the disclaimed interest devolves as if the disclaimant had predeceased the effective date of the instrument or contract. However, if by law or under the nontestamentary instrument or contract the descendants of the disclaimant would share in the disclaimed interest by representation or otherwise if the disclaimant were to predecease the effective date of the instrument, the disclaimed interest then passes by representation or as directed by the governing instrument to the descendants of the disclaimant who survive the effective date of the instrument. A disclaimer relates back for all purposes to that date. A future interest that takes effect in possession or enjoyment at or after the termination of the disclaimed interest takes effect as if the disclaimant had died before the effective date of the instrument or contract that transferred the disclaimed interest.

I. The disclaimer or the written waiver of the right to disclaim is binding on the disclaimant or the person who makes the waiver and on all persons claiming through or under either of them.

J. The right to disclaim property or an interest in property is barred by:

1. An assignment, conveyance, encumbrance, pledge or transfer of the property or interest or a contract.
2. A written waiver of the right to disclaim.
3. An acceptance of the property or interest or a benefit under it.
4. A sale of the property or interest under judicial sale made before the disclaimer is made.

K. This section does not limit a person’s right to waive, release, disclaim or renounce property or an interest in that property under any other statute.

L. An interest in property that exists on December 31, 1994 as to which, if a present interest, the time for filing a disclaimer under this section has not expired or, if a future interest, the interest has not become indefeasibly vested or the taker finally ascertained may be disclaimed within nine months after December 31, 1994.

M. For the purposes of this section:

1. Acceptance of an interest is not acceptance of any separate interest given under the same instrument.
2. Interest for life or for any other period of time is a single interest that is separate from any interest in the principal or any additional interest in income that takes effect on the occurrence of a future event.
3. An interest in periodic payments to be made from principal or income, or both, for the life of the beneficiary or for any other period of time is a single interest that is separate from any additional payments to be made on the occurrence of a future event.

Title 14, Art.8, §14-2801.