§ 32-17.5-4-1 — Rules applicable to a disclaimer of an interest in property

Indiana § 32-17.5-4-1

• Jurisdiction: Indiana
• Title 32: PROPERTY
• Art. 17.5: UNIFORM DISCLAIMER OF PROPERTY
• Ch. 4: Disclaimer of Interest in Property

Text

Except for a disclaimer under IC 32-17.5-5
or IC 32-17.5-6-1, the following rules apply to a disclaimer of an
interest in property:
(1) A disclaimer takes effect:
(A) when the instrument creating the interest becomes
irrevocable; or
(B) upon the intestate's death if the interest arose under the law
of intestate succession.
(2) A disclaimed interest passes according to any provision in the
instrument creating the interest:
(A) that provides for the disposition of the interest should the
interest be disclaimed; or
(B) that concerns disclaimed interests in general.
(3) If the instrument creating the disclaimed interest does not
contain a provision described in subdivision (2), the following
rules apply:
(A) If the disclaimant is an individual, the following rules
apply:
(i) Except as provided in items (ii) and (iii), the disclaimed
interest passes as if the disclaimant had died immediately
before the time of distribution.
(ii) If, by law or under the instrument, the descendants of the
disclaimant would share in the disclaimed interest by any
method of representation had the disclaimant died before the
time of distribution, the disclaimed interest passes only to the
descendants of the disclaimant who survive at the time of
distribution.
(iii) If the disclaimed interest would have passed to the
disclaimant's estate had the disclaimant died before the time
of distribution, the disclaimed interest passes by
representation to the descendants of the disclaimant who
survive at the time of distribution. If no descendant of the
disclaimant survives the time of distribution, the disclaimed
interest becomes part of the residue under the instrument
creating the disclaimed interest.
(B) If the disclaimant is not an individual, the disclaimed
interest passes as if the disclaimant did not exist.
(4) If the disclaimed interest arose under the law of intestate
succession, the disclaimed interest passes as if the disclaimant
had died immediately before the intestate's death.
(5) Upon the disclaimer of a preceding interest:
(A) a future interest held by a person other than the disclaimant
takes effect as if the disclaimant had died or ceased to exist
immediately before the time of distribution; and
(B) a future interest held by the disclaimant is not accelerated
in possession or enjoyment.
(6) If a beneficiary of a transfer on death transfer (as defined in IC 32-17-14-3(17)) disclaims an interest in the property, the
disclaimant's interest in the property passes as follows:
(A) In the case of a disclaimant who is an individual, as if the
disclaimant had died immediately before the death of the owner
(as defined in IC 32-17-14-3(7)).
(B) In the case of a disclaimant who is not an individual, as if
the disclaimant did not exist before the death of the owner (as
defined in IC 32-17-14-3(7)).

Legislative History

As added by P.L.5-2003, SEC.1. Amended by P.L.238-2005, SEC.54; P.L.6-2010, SEC.38; P.L.190-2016, SEC.41; P.L.231-2019, SEC.45.