Minnesota’s new disclaimer laws go into effect today (1/1/2010). Under the new laws, compliance with the disclaimer requirements was made significantly easier. Three highlights of the new laws include:
- The disclaimer under most circumstances does not need to be filed with a court.
- The nonprobate and probate disclaimer statutes have been merged into one statutory section.
- For Minnesota purposes, there is no time limit to disclaim (previously, it was 9 months from the date of death). However, tax-qualified disclaimers still must be completed within 9 months of the date of death under federal law. Therefore, it is important to be aware of the hard 9-month deadline if the purpose of the disclaimer is for federal tax reasons. If this is the case, be sure to review the appropriate sections of the internal revenue code (e.g. IRC Sec. 2518) to ensure that your disclaimer also meets the more stringent federal requirements.