PRINTER'S NO. 1368
No. 1145 Session of 1975
INTRODUCED BY FRAME, REIBMAN, AMMERMAN, HAGER, HILL AND O'PAKE,
OCTOBER 16, 1975
REFERRED TO JUDICIARY, OCTOBER 16, 1975
AN ACT
1 Amending Title 20 (Decedents, Estates and Fiduciaries) of the
2 Pennsylvania Consolidated Statutes, to provide for
3 disclaimers; and conforming other provisions.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Subsection (a) of section 6103 of Title 20, act
7 of November 25, 1970 (P.L.707, No.230), known as the
8 Pennsylvania Consolidated Statutes, added June 30, 1972
9 (P.L.508, No.164), is amended to read:
10 § 6103. Release or disclaimer of powers or interests.
11 (a) Powers and interest releasable.--Any power of
12 appointment, or power of consumption, whether general or
13 special, other than a power in trust which is imperative, and
14 any interest in, to, or over real or personal property held or
15 owned outright, or in trust, or in any other manner which is
16 reserved or given to any person by deed, will or otherwise, and
17 irrespective of any limitation of such power or interest by
18 virtue of any restriction in the nature of a so-called
1 spendthrift trust provision, or similar provision, may be
2 released or disclaimed, either with or without consideration by
3 written instrument signed by the person possessing the power or
4 the interest and delivered as hereinafter provided, but nothing
5 in this section shall authorize an income beneficiary of a
6 spendthrift trust to release or disclaim his right to such
7 income, unless as a result of the release or disclaimer the
8 released or disclaimed income will pass to one or more of the
9 beneficiary's descendants. This section shall not apply to an
10 interest that may be disclaimed under Chapter 62.
11 * * *
12 Section 2. Title 20 is amended by adding a chapter to read:
13 CHAPTER 62
14 DISCLAIMERS
15 Sec.
16 6201. Right to disclaim.
17 6202. Disclaimers by fiduciaries.
18 6203. Interests subject to disclaimer.
19 6204. Filing, delivery and recording.
20 6205. Effect of disclaimer.
21 6206. Bar to disclaimer.
22 6207. Other statutes.
23 § 6201. Right to disclaim.
24 A person to whom an interest in property would have devolved
25 by whatever means, including a beneficiary under a will, an
26 appointee under the exercise of a power of appointment, a person
27 entitled to take by intestacy, a donee of an inter vivos
28 transfer, and a person entitled to a disclaimed interest, may
29 disclaim it in whole or in part by a written disclaimer which
30 shall (i) describe the interest disclaimed, (ii) declare the
19750S1145B1368 - 2 -
1 disclaimer and extent thereof, and (iii) be signed by the
2 disclaimant. The right to disclaim shall exist notwithstanding
3 any limitation on the interest in the nature of a spendthrift
4 provision or similar restriction.
5 § 6202. Disclaimers by fiduciaries.
6 A disclaimer on behalf of a decedent, a minor or an
7 incompetent may be made by his personal representative or the
8 guardian of his estate if the court having jurisdiction of the
9 estate authorizes the disclaimer after finding that it is
10 advisable and will not materially prejudice the rights of
11 creditors, heirs or beneficiaries of the decedent, the minor or
12 his creditors, or the incompetent or his creditors, as the case
13 may be.
14 § 6203. Interests subject to disclaimer.
15 A disclaimer in whole or in part may be made of any present
16 or future interest, vested or contingent, including a possible
17 future right to take as an appointee under an unexercised power
18 of appointment or under a discretionary power to distribute
19 income or principal.
20 § 6204. Filing, delivery and recording.
21 (a) Will or intestacy.--If the interest would have devolved
22 to the disclaimant by will or by intestacy, the disclaimer shall
23 be filed with the clerk of the orphans' court division of the
24 county where the decedent died domiciled or, if the decedent was
25 not domiciled in this Commonwealth, of the county where the
26 property involved is located, and a copy of the disclaimer shall
27 be delivered to any personal representative, trustee or other
28 fiduciary in possession of the property.
29 (b) Inter vivos transfers.--If the interest would have
30 devolved to the disclaimant by an inter vivos instrument, the
19750S1145B1368 - 3 -
1 disclaimer or a copy thereof shall be delivered to the trustee
2 or other person having legal title to or possession of the
3 property or interest disclaimed or who is entitled thereto by
4 reason of the disclaimer.
5 (c) Powers of appointment.--If the interest would have
6 devolved to the disclaimant by reason of the exercise of a power
7 of appointment, the disclaimer or a copy thereof shall be filed
8 or delivered as required by the above provisions if the donor of
9 the power is regarded as the donor of the interest or if the
10 person who exercised the power is regarded as the donor of the
11 interest.
12 (d) Real estate.--If an interest in real property is
13 disclaimed, a copy of the disclaimer may be recorded in the
14 office for the recording of deeds of the county where the real
15 estate is situated and it shall not be effective as to a bona
16 fide grantee or holder of a lien against the property who has
17 given value therefor before the disclaimer is so recorded.
18 § 6205. Effect of disclaimer.
19 (a) In general.--A disclaimer relates back for all purposes
20 to the date of the death of the decedent or the effective date
21 of the inter vivos transfer as the case may be. The disclaimer
22 shall be binding upon the disclaimant and all persons claiming
23 through or under him.
24 (b) Rights of other parties.--Unless a testator or donor has
25 provided for another disposition, the disclaimer shall, for
26 purposes of determining the rights of other parties, be
27 equivalent to the disclaimant's having died before the decedent
28 in the case of a devolution by will or intestacy or before the
29 effective date of an inter vivos transfer, except that, when
30 applying section 2104(1) of this code (relating to rules of
19750S1145B1368 - 4 -
1 descent--taking in different degrees) or analogous provisions of
2 a governing instrument, the fact that the disclaimant actually
3 survived shall be recognized in determining whether other
4 parties take equally or by representation.
5 (c) Powers of appointment.--In applying this section to an
6 interest that would have devolved by reason of the exercise of a
7 power of appointment, the person exercising the power shall be
8 regarded as the decedent or transferor, as the case may be.
9 § 6206. Bar to disclaimer.
10 (a) Acceptance.--A disclaimer may be made at any time before
11 acceptance. An acceptance may be express or may be inferred from
12 actions of the person entitled to receive an interest in
13 property such as the following:
14 (1) The taking of possession or accepting delivery of
15 the property or interest.
16 (2) A written waiver of the right to disclaim.
17 (3) An assignment, conveyance, encumbrance, pledge or
18 other transfer of the interest or a contract to do so.
19 (4) A representation that the interest has been or will
20 be accepted to a person who relies thereon to his detriment.
21 (5) A sale of the interest under a judicial sale.
22 To constitute a bar to a disclaimer, a prior acceptance must
23 be affirmatively proved. The mere lapse of time, with or without
24 knowledge of the interest on the part of the disclaimant, shall
25 not constitute an acceptance.
26 (b) Partial acceptance within six months.--The acceptance of
27 part of a single interest shall be considered as only a partial
28 acceptance and will not be a bar to a subsequent disclaimer of
29 any part or all of the balance of the interest if the part of
30 the interest is accepted before the expiration of six months
19750S1145B1368 - 5 -
1 from (i) the death of the decedent in the case of an interest
2 that would have devolved by will or intestacy, or (ii) the
3 effective date of the transfer in the case of an interest that
4 would have devolved by an inter vivos transfer. In applying this
5 subsection to an interest that would have devolved by reason of
6 the exercise of a power of appointment, the person exercising
7 the power shall be regarded as the decedent or the transferor,
8 as the case may be.
9 (c) Partial acceptance after six months.--The acceptance of
10 a part of a single interest after the expiration of such six-
11 month period shall be considered an acceptance of the entire
12 interest and a bar to any subsequent disclaimer thereof but
13 shall not be an acceptance of any separate interest given under
14 the same instrument. In construing this subsection (i) income
15 for life or any other period shall be considered a single
16 interest but separate from any interest in the principal or any
17 additional interest in income to take effect upon the happening
18 of a future event, and (ii) an interest in periodic payments to
19 be made from principal or income, or both, for the life of the
20 beneficiary or any other period shall be considered a single
21 interest but separate from any additional payments to be made
22 upon the happening of a future event.
23 § 6207. Other statutes.
24 The provisions of this chapter do not abridge the right of a
25 person to disclaim interests under any other statute and do not
26 affect any additional requirements for a disclaimer to be
27 effective for inheritance tax purposes or other purposes covered
28 specifically in other statutory provisions.
29 Section 3. This act shall take effect immediately and shall
30 apply to any disclaimer hereafter made of any interest that
19750S1145B1368 - 6 -
1 would have devolved by reason of a transfer or death whether
2 before or after the effective date of this act.
G8L22ML/19750S1145B1368 - 7 -