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

FEDERAL TAX TIMING — IRC § 2518: For federal qualified-disclaimer treatment,
the writing must be received by a recipient named in § 2518(b)(2) no later
than nine months after the later of the transfer creating the interest or the
disclaimant's twenty-first birthday. Transfer-specific rules can select an
earlier event than death. The regulation supplies limited timely-mailing and
weekend/legal-holiday rules. Counsel must determine the transfer date,
recipient, acceptance history, destination, and exact deadline before signing.

DISCLAIMER AND RENUNCIATION OF INTEREST (QUALIFIED DISCLAIMER)

STATE OF NORTH DAKOTA

TABLE OF CONTENTS

1. Disclaimant Information
2. Identification of the Transfer and Interest Disclaimed
3. Statutory Authority
4. The Disclaimer / Renunciation
5. Qualified-Disclaimer Representations
6. Effect and Passing of the Disclaimed Interest
7. Irrevocability
8. Delivery, Filing, and Recording
9. Signature and Optional Acknowledgment
10. Delivery and Receipt Record
11. Counsel Completion Checklist

1. DISCLAIMANT INFORMATION

The undersigned (the "Disclaimant") is a person to whom an interest in or power over property would have passed (N.D.C.C. § 30.1-10.1-01), namely a(n): ☐ heir (intestate succession) ☐ devisee ☐ beneficiary under a will ☐ beneficiary under a testamentary or inter vivos trust ☐ beneficiary under a beneficiary designation (insurance, annuity, POD account, security in beneficiary form, retirement/employment-related plan) ☐ surviving holder of jointly held property ☐ appointee or holder of a power of appointment ☐ fiduciary ☐ 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 (N.D.C.C. Title 30.1)
☐ Inter vivos or testamentary trust
☐ Beneficiary designation (life insurance, annuity, retirement/employment-related plan, POD account, or security registered in beneficiary form)
☐ Jointly held property (survivorship)
☐ 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 other interest (N.D.C.C. § 30.1-10.1-02(3)): [____________________] (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 the North Dakota Uniform Disclaimer of Property Interests Act, N.D.C.C. Ch. 30.1-10.1, and is intended to constitute a qualified disclaimer under 26 U.S.C. § 2518 and Treas. Reg. § 25.2518-2.

• N.D.C.C. § 30.1-10.1-02(1) authorizes a person to disclaim, in whole or in part, any interest in or power over property (including a power of appointment), notwithstanding any spendthrift provision or similar restriction or any restriction or limitation on the right to disclaim.
• N.D.C.C. § 30.1-10.1-02(4) requires that a disclaimer (1) be in a writing or other record; (2) declare the disclaimer; (3) describe the interest or power disclaimed; (4) be signed by the person making it; and (5) be delivered or filed as provided in N.D.C.C. § 30.1-10.1-09.

• N.D.C.C. § 30.1-10.1-10(2) identifies acceptance, transfer, encumbrance,
  pledge, a contract to transfer, and a judicial sale as state-law bars before
  the disclaimer becomes effective. Subsection (7) recognizes a disclaimer or
  transfer that federal tax law treats as never transferred to the disclaimant.

• N.D.C.C. § 30.1-10.1-11 governs recording. It is not a tax-deadline section.

4. THE DISCLAIMER / RENUNCIATION

The Disclaimant, intending to be legally bound, hereby IRREVOCABLY DISCLAIMS and RENOUNCES all (or, where a partial disclaimer is elected in Section 2, the stated portion 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 refusal to accept the interest is a disclaimer within the meaning of N.D.C.C. § 30.1-10.1-01 and is not a transfer, assignment, or release (N.D.C.C. § 30.1-10.1-02(6)).

5. QUALIFIED-DISCLAIMER REPRESENTATIONS

The Disclaimant represents and certifies that:

☐ This Disclaimer is in a writing or other record, declares the disclaimer, describes the interest or power disclaimed, and is signed by the Disclaimant, as required by N.D.C.C. § 30.1-10.1-02(4) and Treas. Reg. § 25.2518-2(b).

☐ This writing will be received by the federal recipient identified in Section
8 within nine months after the later of the transfer creating the interest or
the date the Disclaimant attained age 21 (26 U.S.C. § 2518(b)(2)). Counsel has
documented the controlling transfer date and considered Treas. Reg.
§ 25.2518-2(c)'s transfer-specific and limited mailing rules.

☐ The Disclaimant has NOT accepted the disclaimed interest or any of its
benefits and has not voluntarily assigned, conveyed, encumbered, pledged, or
transferred it, contracted to do so, or allowed a judicial sale of it
(26 U.S.C. § 2518(b)(3); N.D.C.C. § 30.1-10.1-10(2)).

☐ The disclaimed interest passes without any direction by the Disclaimant
and passes either to the decedent's spouse or to a person other than the
Disclaimant (26 U.S.C. § 2518(b)(4)).

☐ Counsel completed the state-law effect analysis in Section 6 under the
correct route for this interest.

6. EFFECT AND PASSING OF THE DISCLAIMED INTEREST

Select the correct state-law route after reviewing the governing instrument:

☐ Ordinary property interest — N.D.C.C. § 30.1-10.1-03. The disclaimer
takes effect when the instrument creating the interest becomes irrevocable or,
for intestate succession, at death. The interest first passes under any
governing-instrument disclaimer provision. If none applies, counsel completed
the remaining individual/nonindividual, representation, and future-interest
analysis under subsections (4) and (5).

☐ Survivorship interest in jointly held property — N.D.C.C.
§ 30.1-10.1-04. Counsel calculated the disclaimable share under subsection
(1). The disclaimer takes effect at the relevant holder's death and the
disclaimed interest passes as if the person whose interest is disclaimed
predeceased that holder.

Governing provision and recipient after disclaimer: [________________________________]

The Disclaimant does not direct the destination. Counsel confirmed the result
under the governing instrument and applicable law.

7. IRREVOCABILITY

Under N.D.C.C. § 30.1-10.1-02(5), this Disclaimer becomes irrevocable
upon the later of its delivery or filing under § 30.1-10.1-09 or the time it
becomes effective under §§ 30.1-10.1-03 through 30.1-10.1-08.

8. DELIVERY, FILING, AND RECORDING

N.D.C.C. § 30.1-10.1-09 permits personal delivery, first-class mail, or another
method likely to result in receipt. Select the one state route that applies:

☐ Will or intestacy, other than a testamentary trust — subsection (2):
deliver to the personal representative; if none serves, file with the court
having appointment jurisdiction.

☐ Testamentary trust — subsection (3): deliver to the serving trustee; if
none serves, deliver to the personal representative; if neither serves, file
with a court having trust-enforcement jurisdiction.

☐ Inter vivos trust — subsection (4): deliver to the serving trustee; if
none serves, file with a court having trust-enforcement jurisdiction; if made
before the trust instrument becomes irrevocable, deliver to the revocable-trust
settlor or transferor of the interest.

☐ Beneficiary designation before it becomes irrevocable — subsection (5):
deliver to the person making the designation.

☐ Beneficiary designation after it becomes irrevocable — subsection (6):
for personal property, deliver to the person obligated to distribute; for real
property, record with the county recorder where the property is located.

☐ Surviving holder of jointly held property — subsection (7): deliver to
the person to whom the disclaimed interest passes.

☐ Object or taker in default of a power — subsection (8): deliver to the
powerholder or the fiduciary under the creating instrument; if no fiduciary
serves, file with the court having authority to appoint the fiduciary.

☐ Appointee of a nonfiduciary power — subsection (9): deliver to the
powerholder, the powerholder's personal representative, or the fiduciary under
the creating instrument; if no fiduciary serves, file with the court having
authority to appoint the fiduciary.

☐ Fiduciary disclaiming a power over a trust or estate — subsection (10):
use the applicable subsection (2), (3), or (4) route as though the power were
an interest in property.

☐ Agent disclaiming a power — subsection (11): deliver to the principal or
the principal's representative.

State recipient or court/recorder: [________________________________]

Separate federal receipt check — 26 U.S.C. § 2518(b)(2):

☐ Counsel identified the transferor, the transferor's legal representative, or
the holder of legal title as the federal recipient: [________________________________].

N.D.C.C. § 30.1-10.1-11 permits recording when the instrument transferring the
interest or power is required or permitted to be filed, recorded, or registered.
Except for subsection (6)'s real-property beneficiary-designation route,
failure to record does not affect state validity between the disclaimant and
the persons taking by reason of the disclaimer.

9. SIGNATURE

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

Disclaimant Signature: ______________________________________

Printed Name: [________________________________]

N.D.C.C. § 30.1-10.1-02(4) requires the record to be signed; it does not list
acknowledgment, notarization, or a separate perjury declaration among the
disclaimer elements. Counsel must determine whether another law, the governing
instrument, a court, or a recorder requires an additional execution form.

10. DELIVERY AND RECEIPT RECORD

Record every state delivery or filing and the separate federal receipt evidence.

Signature: ______________________________________
Printed Name: [________________________________]

11. COUNSEL COMPLETION CHECKLIST

☐ The transfer, interest, ownership, governing instrument, disclaimable share,
and post-disclaimer destination were determined.

☐ Counsel confirmed that no written waiver or event in N.D.C.C.
§ 30.1-10.1-10 bars or limits the disclaimer.

☐ The correct effect rule was selected: § 30.1-10.1-03 for an ordinary property
interest or § 30.1-10.1-04 for survivorship rights in jointly held property.

☐ The correct state delivery, filing, or recording route under
§ 30.1-10.1-09 was completed.

☐ If federal qualified-disclaimer treatment is intended, the separate
§ 2518 recipient, receipt deadline, nonacceptance, and destination requirements
were satisfied and documented.

☐ Counsel determined whether § 30.1-10.1-11 permits or another law requires
recording and whether any additional execution form is required.

☐ Supporting materials selected by counsel are assembled, including the
governing instrument, complete property description, valuation or ownership
records, and delivery, receipt, filing, or recording evidence.

SOURCES AND REFERENCES

• N.D.C.C. Chapter 30.1-10.1 — Disclaimer of Property Interests
• 26 U.S.C. § 2518 — Disclaimers
• 26 C.F.R. § 25.2518-2 — Requirements for a Qualified Disclaimer