Disclaimer and Renunciation of Interest (Qualified Disclaimer) — Arkansas

TIMING — IRC § 2518 (9-MONTH DEADLINE): Under Ark. Code § 28-2-214, to be a tax-qualified disclaimer the disclaimer must be made within the time periods of 26 U.S.C. § 2518 — generally within nine (9) months from the day the interest was created (for a decedent, the date of death), or within 9 months after the disclaimant turns 21, with no acceptance of the interest or its benefits. Verify the deadline with counsel before signing.

DISCLAIMER AND RENUNCIATION OF INTEREST (QUALIFIED DISCLAIMER)

STATE OF ARKANSAS

TABLE OF CONTENTS

1. Disclaimant Information
2. Identification of the Transfer and Interest Disclaimed
3. Statutory Authority
4. The Disclaimer
5. Qualified-Disclaimer Representations
6. Effect and Passing of the Disclaimed Interest
7. Irrevocability and Binding Effect
8. Delivery, Filing, and Recording
9. Signature, Acknowledgment, and Notarization
10. Verification / Declaration
11. Certificate of Delivery / Service
12. Attachments Checklist

1. DISCLAIMANT INFORMATION

The undersigned (the "Disclaimant") is a person with an interest in or power over property that may be disclaimed under Ark. Code § 28-2-205, namely a(n): ☐ heir ☐ devisee ☐ beneficiary under a will or trust ☐ surviving joint tenant or tenant by the entirety ☐ beneficiary under a beneficiary designation ☐ appointee, object, or taker in default under a power of appointment ☐ other: [____________________].

2. IDENTIFICATION OF THE TRANSFER AND INTEREST DISCLAIMED

Source of the interest (check all that apply):
☐ Last Will and Testament of the Decedent
☐ Intestate succession (Ark. Code § 28-9-201 et seq.)
☐ Revocable, inter vivos, or testamentary trust
☐ Beneficiary designation (life insurance, annuity, retirement plan, POD/TOD account, or security registered in beneficiary form)
☐ Joint tenancy with right of survivorship / tenancy by the entirety
☐ Power of appointment
☐ Other: [________________________________]

Extent of the disclaimer:
☐ Full disclaimer — the Disclaimant disclaims the entire interest described above.
☐ Partial disclaimer — the Disclaimant disclaims only the following portion (which may be expressed as a fraction, percentage, monetary amount, term of years, or limitation of a power, per Ark. Code § 28-2-205(d)): [____________________].

Legal description of any real property disclaimed (or see attached Exhibit A): [________________________________]

3. STATUTORY AUTHORITY

This Disclaimer is made under the Uniform Disclaimer of Property Interests Act (1999), Ark. Code §§ 28-2-201 through 28-2-221 (Subchapter 2 of Title 28, Chapter 2, "Disclaimer of Property"), and is intended to constitute a qualified disclaimer under 26 U.S.C. § 2518 and Treas. Reg. § 25.2518-2.

• Ark. Code § 28-2-205(a) authorizes a person to disclaim, in whole or in part, any interest in or power over property, including a power of appointment, even if the creator imposed a spendthrift provision or similar restriction.
• Ark. Code § 28-2-205(c) requires that, to be effective, a disclaimer be in a writing or other record, declare the disclaimer, describe the interest or power disclaimed, be signed by the person making it, and be delivered or filed in the manner provided in Ark. Code § 28-2-212.
• Ark. Code § 28-2-214 provides that a disclaimer treated under the Internal Revenue Code as never having transferred the interest is effective under the subchapter, and that a tax-qualified disclaimer must be made within the time periods of 26 U.S.C. § 2518.

4. THE DISCLAIMER

The Disclaimant, intending to be legally bound, hereby IRREVOCABLY and UNQUALIFIEDLY DISCLAIMS and RENOUNCES all (or, where a partial disclaimer is elected in Section 2, the stated part of all) right, title, claim, and interest of every kind — whether vested or contingent, present or future, legal or equitable — in and to the property and interest described in Section 2 above. The Disclaimant declares this disclaimer.

This Disclaimer is made freely, voluntarily, and with full knowledge of its legal and tax consequences.

5. QUALIFIED-DISCLAIMER REPRESENTATIONS

The Disclaimant represents and certifies that:

☐ This Disclaimer is in a writing or record, declares the disclaimer, describes the interest disclaimed, and is signed by the Disclaimant (or the Disclaimant's legal representative), as required by Ark. Code § 28-2-205(c) and Treas. Reg. § 25.2518-2(b).

☐ This Disclaimer is being delivered or filed within nine (9) months after the later of (a) the date of the Decedent's death or the day the interest was created, or (b) the date the Disclaimant attained age 21 (Ark. Code § 28-2-214; 26 U.S.C. § 2518(b)(2)).

☐ The Disclaimant has NOT accepted the disclaimed interest or any of its benefits, and has not assigned, conveyed, encumbered, pledged, or transferred the interest, nor contracted to do so (Ark. Code § 28-2-213; Treas. Reg. § 25.2518-2(d)).

☐ The disclaimed interest passes without any direction on the part of the Disclaimant (26 U.S.C. § 2518(b)(4); Treas. Reg. § 25.2518-2(e)).

☐ As a result of this Disclaimer, the interest passes as if the Disclaimant had died immediately before the time of distribution, as provided by Ark. Code § 28-2-206.

6. EFFECT AND PASSING OF THE DISCLAIMED INTEREST

Under Ark. Code § 28-2-206, the disclaimer takes effect as of the time the instrument creating the interest became irrevocable or, for an intestate interest, as of the time of the intestate's death. The disclaimed interest passes according to any provision in the governing instrument for disclaimed interests; if the instrument contains no such provision, and the Disclaimant is an individual, the disclaimed interest passes as if the Disclaimant had died immediately before the time of distribution (or, where the Disclaimant's descendants would share by representation, only to those descendants who survive the time of distribution). On the disclaimer of a preceding interest, a future interest held by another person takes effect as if the Disclaimant had died immediately before the time of distribution.

The Disclaimant does not direct to whom the disclaimed interest passes; it passes solely by operation of the governing instrument and Arkansas law.

7. IRREVOCABILITY AND BINDING EFFECT

Under Ark. Code § 28-2-205, this Disclaimer becomes irrevocable when it is delivered or filed pursuant to Ark. Code § 28-2-212, or when it becomes effective as provided in the subchapter, whichever occurs later. This Disclaimer is binding upon the Disclaimant and all persons claiming through or under the Disclaimant.

8. DELIVERY, FILING, AND RECORDING

Pursuant to Ark. Code § 28-2-212, the Disclaimant shall (check all that apply). Delivery may be by personal delivery, first-class mail, or any other method likely to result in its receipt:

☐ Deliver this Disclaimer to the personal representative of the Decedent's estate (interest created by will or intestate succession, other than an interest in a testamentary trust); or, if no personal representative is then serving, file it with a court having jurisdiction to appoint the personal representative (Ark. Code § 28-2-212(c)).

☐ Deliver this Disclaimer to the trustee then serving (interest in a testamentary or inter vivos trust); or, if none is serving, as provided in Ark. Code § 28-2-212(d)–(e).

☐ Deliver this Disclaimer to the person making the beneficiary designation (if disclaimed before the designation becomes irrevocable) or to the person obligated to distribute the interest (if disclaimed after the designation becomes irrevocable) (Ark. Code § 28-2-212(f)–(g)).

☐ Deliver this Disclaimer to the person to whom the disclaimed interest passes (disclaimer by a surviving holder of jointly held property) (Ark. Code § 28-2-212(h)).

☐ Record this Disclaimer in the Office of the Circuit Clerk of [____________] County, Arkansas, where the real property is located, if real property or an interest in real property is disclaimed (Ark. Code § 28-2-215(a)). Failure to record does not affect the Disclaimer's validity as between the Disclaimant and the persons to whom the interest passes (Ark. Code § 28-2-215(c)).

☐ Spousal consent (real property): The Disclaimant's spouse has consented in writing to this Disclaimer and is thereby debarred from any dower or curtesy interest in the disclaimed real estate (Ark. Code § 28-2-215(b)). Spouse signature: ______________________________ Date: [__/__/____]

9. SIGNATURE, ACKNOWLEDGMENT, AND NOTARIZATION

Executed this [____] day of [____________], 20[____].

Disclaimant Signature: ______________________________________

Printed Name: [________________________________]

ACKNOWLEDGMENT

STATE OF ARKANSAS )
COUNTY OF [____________] )

Before me, the undersigned Notary Public in and for said county and state, personally appeared [DISCLAIMANT FULL LEGAL NAME], known to me (or satisfactorily proven) to be the person whose name is subscribed to the foregoing instrument, who acknowledged before me that he/she executed the same voluntarily for the purposes therein contained.

Given under my hand and official seal this [____] day of [____________], 20[____].

______________________________________
Notary Public
My commission expires: [__/__/____]

[NOTARY SEAL]

10. VERIFICATION / DECLARATION

I, [DISCLAIMANT FULL LEGAL NAME], declare under penalty of perjury under the laws of the State of Arkansas that the foregoing is true and correct, that I have not accepted the disclaimed interest or any benefit thereof, and that I make this Disclaimer of my own free will.

Signature: ______________________________________
Date: [__/__/____]

11. CERTIFICATE OF DELIVERY / SERVICE

I certify that on the date(s) shown below a true and correct copy of this Disclaimer was delivered (in person, by first-class mail, or by other method likely to result in receipt) to the following:

Signature: ______________________________________
Printed Name: [________________________________]

12. ATTACHMENTS CHECKLIST

☐ Copy of the Last Will and Testament, trust instrument, or beneficiary designation creating the disclaimed interest
☐ Exhibit A — legal description of any real property disclaimed
☐ Certified copy of the Decedent's Death Certificate
☐ Written spousal consent (if disclaiming real property and debarring dower/curtesy under Ark. Code § 28-2-215(b))
☐ Proof of delivery / mailing (postmark or receipts)
☐ Copy of the recorded Disclaimer (Circuit Clerk), if real property is involved
☐ File-stamped copy from the Circuit Court (probate division), if filed

SOURCES AND REFERENCES

• Uniform Disclaimer of Property Interests Act (1999), Ark. Code §§ 28-2-201–28-2-221 — https://law.justia.com/codes/arkansas/title-28/subtitle-1/chapter-2/subchapter-2/
• 26 U.S.C. § 2518 (Disclaimers) — https://www.law.cornell.edu/uscode/text/26/2518
• Treas. Reg. § 25.2518-2 (Requirements for a qualified disclaimer) — https://www.law.cornell.edu/cfr/text/26/25.2518-2