Disclaimer and Renunciation of Interest (Qualified Disclaimer) — North Carolina

TIMING — FEDERAL RECEIPT AND NORTH CAROLINA FILING: Federal qualified-disclaimer treatment generally requires the signed writing to be received by a permitted recipient within nine (9) months after the later of the transfer creating the interest or the disclaimant's twenty-first birthday. A qualifying timely mailing can count as timely delivery, and a Saturday, Sunday, or legal-holiday last day can move to the first succeeding business day under Treas. Reg. § 25.2518-2(c)(2). Transfer-specific rules may select an earlier event than death. N.C.G.S. § 31B-2(a) separately requires filing within the applicable federal period or, if no federal statute applies, within nine months after the transfer was complete for tax purposes. Have counsel calculate both deadlines and recipients before signing or filing.

DISCLAIMER AND RENUNCIATION OF INTEREST (QUALIFIED DISCLAIMER)

STATE OF NORTH CAROLINA

TABLE OF CONTENTS

1. Renouncing Person (Disclaimant) Information
2. Identification of the Transfer and Interest Renounced
3. Statutory Authority
4. The Renunciation / Disclaimer
5. Qualified-Disclaimer Representations
6. Effect and Passing of the Renounced Interest
7. Irrevocability and Binding Effect
8. Filing with Clerk of Court; Registration of Real Property
9. Signature, Acknowledgment, and Notarization
10. Verification / Declaration
11. Certificate of Delivery / Service
12. Attachments Checklist

1. RENOUNCING PERSON (DISCLAIMANT) INFORMATION

The undersigned (the "Renouncing Person" or "Disclaimant") is a person who succeeds to a property interest within the meaning of N.C.G.S. § 31B-1(a), namely a(n): ☐ heir ☐ next of kin ☐ devisee ☐ donee ☐ beneficiary of a life insurance policy (without incidents of ownership) ☐ person succeeding to a renounced interest ☐ beneficiary under a testamentary or inter vivos trust ☐ appointee under a power of appointment ☐ surviving joint tenant / tenant by the entireties / tenant of a survivorship tenancy ☐ beneficiary of a deferred-compensation, retirement, IRA, annuity, or death-benefit contract ☐ other: [____________________].

2. IDENTIFICATION OF THE TRANSFER AND INTEREST RENOUNCED

Source of the interest (check all that apply):
☐ Last Will and Testament of the Decedent
☐ Intestate succession
☐ Inter vivos or testamentary trust
☐ Beneficiary designation (life insurance, retirement/deferred-compensation plan, IRA, annuity, POD/TOD account, or security registered in beneficiary form)
☐ Joint tenancy / tenancy by the entireties / survivorship tenancy
☐ Power of appointment (testamentary or nontestamentary)
☐ Other: [________________________________]

Extent of the renunciation:
☐ Full renunciation — the Renouncing Person renounces the entire interest described above.
☐ Partial renunciation — the Renouncing Person renounces only the following specifically identified separate interest, undivided fraction or percentage of a separate interest, or pecuniary amount: [____________________]. North Carolina permits a fractional share or limited interest or estate under N.C.G.S. § 31B-1(a); federal qualified-disclaimer treatment of a partial interest must separately satisfy Treas. Reg. § 25.2518-3. For an undivided fraction or percentage, specify the share of every substantial right for the full term of that separate interest. For a pecuniary amount, counsel must confirm the regulation's income and segregation conditions.

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

3. STATUTORY AUTHORITY

This Renunciation is made under the North Carolina Renunciation of Property and Renunciation of Fiduciary Powers Act, N.C. Gen. Stat. Ch. 31B, and is intended to constitute a qualified disclaimer under 26 U.S.C. § 2518 and Treas. Reg. §§ 25.2518-2 and 25.2518-3, if the applicable federal requirements are met.

• N.C.G.S. § 31B-1(a) authorizes a person who succeeds to a property interest to renounce, in whole or in part, the right of succession to any property or interest (including a future interest), notwithstanding any spendthrift provision or similar restriction.
• N.C.G.S. § 31B-1(c) requires that the instrument of renunciation (i) identify the transferor of the property or interest or the creator or holder of the power, (ii) describe the property or interest renounced, (iii) declare the renunciation and its extent, and (iv) be signed and acknowledged by the person renouncing.
• N.C.G.S. § 31B-2(a) requires that, to be a qualified disclaimer for federal and State tax purposes, the instrument be filed within the federally required time, or, if no federal statute applies, not later than nine months after the transfer was complete for tax purposes.

4. THE RENUNCIATION / DISCLAIMER

The Renouncing Person, intending to be legally bound, hereby IRREVOCABLY RENOUNCES and DISCLAIMS all (or, where a partial renunciation is elected in Section 2, the stated fractional share or limited interest 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 Renunciation is made freely, voluntarily, and with full knowledge of its legal and tax consequences.

5. QUALIFIED-DISCLAIMER REPRESENTATIONS

The Renouncing Person represents and certifies that:

☐ This Renunciation is in writing and signed and acknowledged by the person renouncing, as required by N.C.G.S. § 31B-1(c). Federal law also permits the writing to be signed by the disclaimant's legal representative where that representative is authorized to act (Treas. Reg. § 25.2518-2(b)).

☐ For federal qualified-disclaimer treatment, this writing is being delivered to a permitted recipient within the period calculated under 26 U.S.C. § 2518(b)(2) and Treas. Reg. § 25.2518-2(c), including any applicable transfer-specific, timely-mailing, weekend, or legal-holiday rule.

☐ For North Carolina filing, this instrument is being filed with the proper clerk within the period required by N.C.G.S. § 31B-2(a) and (c). If real property or an interest in real property is renounced, the separate registration requirement in § 31B-2(d) has also been reviewed.

☐ For federal qualified-disclaimer treatment, the Renouncing Person has NOT accepted the renounced interest or any of its benefits (26 U.S.C. § 2518(b)(3); Treas. Reg. § 25.2518-2(d)). Acceptance does not itself bar a North Carolina renunciation, but may preclude qualified tax treatment (N.C.G.S. § 31B-4(e)). The Renouncing Person has not assigned, conveyed, encumbered, pledged, transferred, or contracted to transfer the renounced interest and has not signed a waiver of the right to renounce (N.C.G.S. § 31B-4(a)).

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

☐ The renounced interest passes under the governing instrument and N.C.G.S. § 31B-3. The predeceased and relation-back treatment in § 31B-3(a)(1) applies only if this instrument is filed within the period in § 31B-2(a); a later filing has the different deemed-transfer and filing-date treatment in § 31B-3(a)(2).

☐ This instrument identifies the transferor / creator or holder of the power, describes the interest renounced, and declares the renunciation and its extent, as required by N.C.G.S. § 31B-1(c).

6. EFFECT AND PASSING OF THE RENOUNCED INTEREST

Under N.C.G.S. § 31B-3(a), unless the instrument creating the interest provides otherwise, a renunciation filed within the period in § 31B-2(a) generally devolves as if the Renouncing Person had predeceased the date the transfer was complete for federal and State inheritance, estate, and gift tax purposes, and relates back to that transfer-completion date. If filed after that period, the Renouncing Person is deemed to have transferred the interest, which devolves as if the person died on the filing date. The statute also supplies specific rules for future interests, testamentary dispositions, intestacy, trusts, and survivorship property.

Where a renunciation of real property is made within the time period required under N.C.G.S. § 31B-2(a), the spouse of the Renouncing Person is not required to join in the instrument, and the spouse has no statutory dower, inchoate marital rights, elective share, or other marital interest in the renounced real property (N.C.G.S. §§ 31B-2(b), 31B-3(a)(1)).

The Renouncing Person does not direct to whom the renounced interest passes; it passes solely by operation of the governing instrument and North Carolina law.

7. IRREVOCABILITY AND BINDING EFFECT

The Renouncing Person makes this disclaimer irrevocably and without qualification for purposes of 26 U.S.C. § 2518 and Treas. Reg. § 25.2518-2(a)(1). The renunciation is binding upon the Renouncing Person and all persons claiming through or under the Renouncing Person (N.C.G.S. § 31B-3(k)).

8. FILING WITH CLERK OF COURT; REGISTRATION OF REAL PROPERTY

Pursuant to N.C.G.S. § 31B-2(c)–(d), the Renouncing Person shall (check all that apply):

☐ File this Renunciation with the Clerk of Superior Court of [____________] County, North Carolina — (i) the county in which administration proceedings have been commenced; (ii) if none, a county in which they could be commenced; or (iii) otherwise, a county whose court has jurisdiction to enforce the instrument creating the interest. Where no estate proceeding has been commenced, the renunciation shall be filed as an estate matter.

☐ Register an executed copy of this Renunciation, if real property or an interest in real property is renounced, with the Register of Deeds of [____________] County, North Carolina, in accordance with N.C.G.S. § 47-18 or § 47-20, indexed in the grantor's index under (i) the name of the transferor or creator/holder of the power and (ii) the name of the Renouncing Person. Record title to a renounced interest in real property does not pass to the persons receiving it until the instrument is so registered.

☐ Deliver a copy of this Renunciation, in person or by certified mail, return receipt requested, to the personal representative, trustee, or other person having legal title to or possession of the interest renounced.

9. SIGNATURE, ACKNOWLEDGMENT, AND NOTARIZATION

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

Renouncing Person Signature: ______________________________________

Printed Name: [________________________________]

ACKNOWLEDGMENT

[____________] County, North Carolina

I certify that [RENOUNCING PERSON FULL LEGAL NAME] personally appeared before me this day, acknowledging that they signed the foregoing document.

Date: [__/__/____]

______________________________________
Official Signature of Notary

Notary's printed or typed name: [________________________________]

My commission expires: [__/__/____]

[NOTARY SEAL]

10. VERIFICATION / DECLARATION

I, [RENOUNCING PERSON FULL LEGAL NAME], confirm that the foregoing statements are true and correct, that I have not accepted the renounced interest or any benefit thereof, and that I make this Renunciation 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 Renunciation was delivered (in person, or by 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 renounced interest
☐ Exhibit A — legal description of any real property renounced
☐ Certified copy of the Decedent's Death Certificate
☐ Proof of delivery / mailing (certified mail receipts)
☐ Registered copy of the Renunciation (Register of Deeds), if real property is involved
☐ File-stamped copy from the Clerk of Superior Court

SOURCES AND REFERENCES

• N.C. Gen. Stat. Ch. 31B (Renunciation of Property and Renunciation of Fiduciary Powers Act) — https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/ByChapter/Chapter_31B.pdf
• N.C.G.S. § 31B-2 (Filing and registering of renunciations) — https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_31B/GS_31B-2.pdf
• N.C.G.S. §§ 31B-3 and 31B-4 (Effect; waiver and bar) — https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_31B/GS_31B-3.pdf ; https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_31B/GS_31B-4.pdf
• 26 U.S.C. § 2518 (Disclaimers) — https://uscode.house.gov/us/usc/119-120/t26/s2518/
• Treas. Reg. §§ 25.2518-2 and 25.2518-3 — https://www.ecfr.gov/current/title-26/part-25/section-25.2518-2 ; https://www.ecfr.gov/current/title-26/part-25/section-25.2518-3