CONTENT

The bill would repeal and replace Public Act 9 of 1971, which provides for the disclaimer of succession to property. The bill would create the "Disclaimer of Property Interests Act" to do the following:

-- Specify the right of a person to disclaim a disclaimable interest in property, and define "property" as anything that could be the subject of ownership.

-- Allow the disclaimer of fiduciary powers and joint property, and allow the disclaimer of present interests without the disclaimer of future interests.

-- Prescribe requirements for the validity and delivery of a disclaimer.

-- Specify the persons to whom disclaimed interests would be transferred ("devolve").

-- Allow disclaimers without a time limit as long as specific events that would bar the right to disclaim had not occurred.

-- Specify that a disclaimer would act as a nonacceptance of the disclaimed interest, rather than as a transfer of the interest.

"Disclaimable interest" would include property, the right to receive or control property, and a power of appointment, but would not include an interest retained by or conferred upon the disclaimant by the disclaimant at the creation of the interest.

Legislative Analyst: S. Margules

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed: 5-14-95 Fiscal Analyst: M. Bain

floor\sb496

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.