Estate Planning

NC Changes Renunciation Laws

By Gregory Herman-Giddens

On June 1, 2009, Governor Perdue signed into law Session Law 2009-48, which, effective October 1, 2009, institutes substantial changes to to statutes dealing with renunciation of interests in property.  In general, the effect of a valid renunciation of property is that the person renouncing is treated as having predeceased the transferor.  For example, a child that renounces an inheritance from a parent would be treated under the parent's will as having died before the parent.

The revisions include:

• Allowing a parent of a minor child to renounce a interest in property that would have passed to the child as a result of the parent's renunciation.
• Expanding the rights of fiduciaries (trustees, personal representatives, attorneys-in-fact) to renounce fiduciary powers and provides a method to have the Clerk of Superior Court approve the renunciation.
• Adding a section regarding spelling out the requirements of delivery of renunciation of different property interests or powers to third persons.
• Adding detail on the effect of renunciation for different types of property.
• Providing that a valid tax qualified disclaimer under federal tax law is effective as a renunciation under North Carolina law.
• Adding renunciation powers to the NC Short Form Power of Attorney.

Full post as published by North Carolina Estate Planning Blog on June 12, 2009 (boomark / email).