Disclaimer and Renunciation of Interest (Qualified Disclaimer) — Illinois

TIMING — IRC § 2518 (9-MONTH FEDERAL DEADLINE): Illinois law (755 ILCS 5/2-7) imposes no fixed statutory deadline to disclaim, but the right is barred once the interest is accepted. To qualify as a federal "qualified disclaimer," this writing must nonetheless be signed and delivered within nine (9) months after the date of the decedent's death or other transfer (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 ILLINOIS

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 to whom property or an interest in property passes within the meaning of 755 ILCS 5/2-7(a), namely a(n): ☐ heir ☐ next of kin ☐ devisee ☐ legatee ☐ grantee ☐ donee ☐ surviving joint tenant / holder of an interest through right of survivorship ☐ beneficiary under a testamentary or nontestamentary instrument or contract ☐ powerholder under the Illinois Trust Code ☐ 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 (755 ILCS 5/2-1)
☐ Revocable or testamentary trust
☐ Beneficiary designation (life insurance, retirement plan, annuity, POD/TOD account, or security registered in beneficiary form)
☐ Joint tenancy with right of survivorship
☐ Power of appointment / power under the Illinois Trust Code
☐ Other: [________________________________]

Extent of the disclaimer:
☐ Full disclaimer — the Disclaimant disclaims the entire interest described above.
☐ Partial disclaimer — the Disclaimant disclaims only the following fractional share, undivided interest, specifically identifiable asset, portion, amount, limited interest, or estate (755 ILCS 5/2-7(a)): [____________________] (e.g., an undivided ____% interest, or the sum of $[____________]).

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

3. STATUTORY AUTHORITY

This Disclaimer is made under 755 ILCS 5/2-7 (the Disclaimer section of the Illinois Probate Act of 1975) and is intended to constitute a qualified disclaimer under 26 U.S.C. § 2518 and Treas. Reg. § 25.2518-2.

• 755 ILCS 5/2-7(a) authorizes a person to whom any property or interest passes, by whatever means, to disclaim the property or interest in whole or in part by delivering or filing a written disclaimer, including a fractional share, undivided interest, specifically identifiable asset, portion or amount, limited interest or estate, or any interest derived through right of survivorship, notwithstanding any spendthrift provision or similar restriction.
• 755 ILCS 5/2-7(b) requires that the disclaimer (1) describe the property or part or interest disclaimed; (2) be signed by the disclaimant or the disclaimant's representative; and (3) declare the disclaimer and its extent.
• 755 ILCS 5/2-7(c) governs delivery to the transferor, donor, trustee, or other person holding legal title, and permits filing with the clerk of the circuit court and recording against real property.

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 fractional share, undivided interest, asset, portion, or amount 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.

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 writing and signed by the Disclaimant (or the Disclaimant's representative), as required by 755 ILCS 5/2-7(b) and Treas. Reg. § 25.2518-2(b).

☐ This Disclaimer is being delivered and/or filed within nine (9) months after the later of (a) the date of the Decedent's death or the effective date of the transfer creating the interest, or (b) the date the Disclaimant attained age 21 (26 U.S.C. § 2518(b)(2)).

☐ The Disclaimant has NOT accepted the disclaimed interest or any of its benefits — including taking possession, accepting delivery, or receiving benefits — and has not assigned, conveyed, encumbered, pledged, sold, transferred, or contracted to transfer the interest (755 ILCS 5/2-7(e); 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 predeceased the Decedent (or the applicable determinative date), as provided by 755 ILCS 5/2-7(d).

☐ This Disclaimer is intended as a qualified disclaimer under 26 U.S.C. § 2518.

6. EFFECT AND PASSING OF THE DISCLAIMED INTEREST

Under 755 ILCS 5/2-7(d), unless expressly provided otherwise in the instrument transferring the property or creating the interest, the disclaimed property, part, or interest descends or is distributed as if the Disclaimant had predeceased the Decedent (for a transfer by reason of death), the date the maker no longer had power to revoke (for a revocable instrument or contract), or the date of the transfer (for any other inter vivos transfer); and a future interest is distributed as if the Disclaimant had predeceased the event finally ascertaining the taker. In each case, the disclaimer relates back to such date for all purposes, and any future interest limited to take effect at or after termination of the disclaimed interest accelerates accordingly.

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

7. IRREVOCABILITY AND BINDING EFFECT

This Disclaimer is irrevocable and may not be modified, withdrawn, or rescinded once delivered or filed. Under 755 ILCS 5/2-7(d), this Disclaimer is binding upon the Disclaimant and all persons claiming by, through, or under the Disclaimant.

8. DELIVERY, FILING, AND RECORDING

Pursuant to 755 ILCS 5/2-7(c), the Disclaimant shall (check all that apply):

☐ Deliver this Disclaimer to the transferor or donor (or representative), or to the trustee or other person who has legal title to the property, part, or interest disclaimed.

☐ If none of the foregoing is readily determinable, deliver this Disclaimer to a person having possession of the property or interest, or who is entitled to it by reason of the disclaimer.

☐ File an executed counterpart of this Disclaimer with the Clerk of the Circuit Court of [____________] County, Illinois, in which the Decedent's estate is administered (or, if administration has not commenced, in which it could be commenced).

☐ Record an executed counterpart in the Office of the Recorder of [____________] County, Illinois (or file with the Registrar of Titles, if the title is registered), where the real estate lies, if an interest in real property is disclaimed.

9. SIGNATURE, ACKNOWLEDGMENT, AND NOTARIZATION

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

Disclaimant Signature: ______________________________________

Printed Name: [________________________________]

ACKNOWLEDGMENT

STATE OF ILLINOIS )
COUNTY OF [____________] )

On this [____] day of [____________], 20[____], before me, the undersigned Notary Public, personally appeared [DISCLAIMANT FULL LEGAL NAME], known to me (or satisfactorily proven) to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he/she executed the same voluntarily for the purposes therein contained.

______________________________________
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 Illinois 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, or by registered or certified mail, return receipt requested) 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
☐ Proof of delivery / mailing (registered or certified mail receipts)
☐ Copy of the recorded Disclaimer (County Recorder / Registrar of Titles), if real property is involved
☐ File-stamped copy from the Circuit Court Clerk (estate proceeding)
☐ Court order approving disclaimer by a representative of a decedent or ward (if applicable, 755 ILCS 5/2-7(a))

SOURCES AND REFERENCES

• 755 ILCS 5/2-7 (Disclaimer) — https://www.ilga.gov/documents/legislation/ilcs/documents/075500050K2-7.htm
• 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