Disclaimer and Renunciation of Interest (Qualified Disclaimer) — New Mexico

TIMING — IRC § 2518 (9-MONTH DEADLINE): To qualify as a federal "qualified disclaimer," this writing must 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. New Mexico's Uniform Disclaimer of Property Interests Act (N.M.S.A. § 45-2-1101 et seq.) intentionally imposes no 9-month state deadline; § 45-2-1114 preserves the right to make a tax-qualified disclaimer, so the IRC § 2518 deadline governs for transfer-tax purposes. Verify the deadline with counsel before signing.

DISCLAIMER AND RENUNCIATION OF INTEREST (QUALIFIED DISCLAIMER)

STATE OF NEW MEXICO

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 the person to whom the disclaimed interest or power would have passed had this disclaimer not been made (N.M.S.A. § 45-2-1102), namely a(n): ☐ heir ☐ devisee ☐ legatee ☐ beneficiary under a testamentary or nontestamentary instrument ☐ surviving holder of jointly held property ☐ donee or appointee under a power of appointment ☐ beneficiary of a beneficiary designation (insurance, annuity, retirement plan, POD/TOD) ☐ taker in default of exercise of a power ☐ 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.M.S.A. § 45-2-101 et seq.)
☐ Revocable, testamentary, or inter vivos trust
☐ Beneficiary designation (life insurance, retirement plan, annuity, POD/TOD account, or security registered in beneficiary form)
☐ Jointly held property with right of survivorship (N.M.S.A. § 45-2-1107)
☐ Community property / surviving-spouse community interest
☐ Power of appointment (N.M.S.A. § 45-2-1109; 45-2-1110)
☐ Other: [________________________________]

Extent of the disclaimer:
☐ Full disclaimer — the Disclaimant disclaims the entire interest or power described above.
☐ Partial disclaimer — the Disclaimant disclaims only the following fraction, percentage, monetary amount, term of years, limitation of a power, or other interest or estate (N.M.S.A. § 45-2-1105(D)): [____________________] (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 Uniform Disclaimer of Property Interests Act, N.M.S.A. 1978, §§ 45-2-1101 to 45-2-1116, and is intended to constitute a qualified disclaimer under 26 U.S.C. § 2518 and Treas. Reg. § 25.2518-2.

• N.M.S.A. § 45-2-1105(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 its creator imposed a spendthrift provision or other restriction.
• N.M.S.A. § 45-2-1105(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 the disclaimer, and be delivered or filed in the manner provided in § 45-2-1112.
• N.M.S.A. § 45-2-1105(D) permits a partial disclaimer expressed as a fraction, percentage, monetary amount, term of years, limitation of a power, or any other interest or estate.
• N.M.S.A. § 45-2-1112 prescribes to whom and how a disclaimer must be delivered or filed, depending on the type of interest.
• N.M.S.A. § 45-2-1113 governs when a disclaimer is barred or limited (e.g., by acceptance of the interest or its benefits).
• N.M.S.A. § 45-2-1114 preserves the right to make a tax-qualified disclaimer under federal or other applicable law.
• N.M.S.A. § 45-2-1115 governs the recording of a disclaimer of an interest in property subject to a recording system.

4. THE DISCLAIMER

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 fraction, percentage, monetary amount, or portion of all) right, title, claim, interest, and power 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.

A disclaimer made under the Act is not a transfer, assignment, or release (N.M.S.A. § 45-2-1105(F)). 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 other record, declares the disclaimer, describes the interest or power disclaimed, and is signed by the Disclaimant (or the Disclaimant's legal representative), as required by N.M.S.A. § 45-2-1105(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 effective date of the transfer creating the interest, or (b) the date the Disclaimant attained age 21 (26 U.S.C. § 2518(b)(2); N.M.S.A. § 45-2-1114).

☐ The Disclaimant has NOT accepted the disclaimed interest or any of its benefits, and has not assigned, conveyed, encumbered, pledged, transferred, or contracted to transfer the interest (N.M.S.A. § 45-2-1113; 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 disclaimed interest passes as if the Disclaimant had died immediately before the time of distribution (or, for jointly held property, as provided by N.M.S.A. § 45-2-1107), under N.M.S.A. § 45-2-1106.

☐ This Disclaimer is intended as a tax-qualified disclaimer under 26 U.S.C. § 2518, consistent with N.M.S.A. § 45-2-1114.

6. EFFECT AND PASSING OF THE DISCLAIMED INTEREST

Under N.M.S.A. § 45-2-1106, the disclaimer takes effect as of the time the instrument creating the interest became irrevocable, or, if the interest arose under intestate succession, as of the time of the intestate's death. The disclaimed interest passes according to any provision in the instrument providing for its disposition if disclaimed; otherwise, if the Disclaimant is an individual, the disclaimed interest passes as if the Disclaimant had died immediately before the time of distribution (and to the Disclaimant's surviving descendants by representation where applicable). A disclaimer of rights of survivorship in jointly held property is governed by N.M.S.A. § 45-2-1107.

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

7. IRREVOCABILITY AND BINDING EFFECT

Under N.M.S.A. § 45-2-1105(E), this Disclaimer becomes irrevocable when it is delivered or filed pursuant to § 45-2-1112, or when it becomes effective as provided in §§ 45-2-1106 through 45-2-1111, whichever occurs later, and may not thereafter be modified, withdrawn, or rescinded. It is binding upon the Disclaimant and all persons claiming through or under the Disclaimant.

8. DELIVERY, FILING, AND RECORDING

Pursuant to N.M.S.A. § 45-2-1112, the Disclaimant shall (check all that apply):

☐ Deliver this Disclaimer to the personal representative of the Decedent's estate (for an interest created by will or intestacy, 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.

☐ Deliver this Disclaimer to the trustee then serving (for an interest in a testamentary or inter vivos trust); or as otherwise provided in § 45-2-1112 if no trustee is serving.

☐ Deliver this Disclaimer to the person making the beneficiary designation or other person identified in § 45-2-1112 (for an interest created by a beneficiary designation, before it becomes irrevocable).

☐ Deliver this Disclaimer to the person to whom the disclaimed interest passes (for a disclaimer by a surviving holder of jointly held property, § 45-2-1112).

Delivery may be effected by personal delivery, first-class mail, or any other method likely to result in its receipt (N.M.S.A. § 45-2-1112).

☐ Record this Disclaimer in the office of the County Clerk of [____________] County, New Mexico, where the real property is located, if an interest in real property is disclaimed (N.M.S.A. § 45-2-1115).

9. SIGNATURE, ACKNOWLEDGMENT, AND NOTARIZATION

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

Disclaimant Signature: ______________________________________

Printed Name: [________________________________]

ACKNOWLEDGMENT

STATE OF NEW MEXICO )
COUNTY OF [____________] )

This instrument was acknowledged before me on this [____] day of [____________], 20[____], by [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.

______________________________________
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 New Mexico 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 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 Clerk), if real property is involved
☐ File-stamped copy from the Probate or District Court (estate proceeding)

SOURCES AND REFERENCES

• Uniform Disclaimer of Property Interests Act, N.M.S.A. 1978, §§ 45-2-1101 to 45-2-1116 — https://law.justia.com/codes/new-mexico/chapter-45/article-2/part-11/
• N.M.S.A. § 45-2-1105 (Power to disclaim; general requirements; when irrevocable) — https://codes.findlaw.com/nm/chapter-45-uniform-probate-code/nm-st-sect-45-2-1105/
• N.M.S.A. § 45-2-1115 (Recording of disclaimer) — https://law.justia.com/codes/new-mexico/chapter-45/article-2/part-11/section-45-2-1115/
• 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