NC Changes Renunciation Laws
On June 1, 2009, Governor Perdue signed into law Session Law 2009-48, which, effective October 1, 2009, institutes substantial changes to to statutes dealing with renunciation of interests in property. In general, the effect of a valid renunciation of property is that the person renouncing is treated as having predeceased the transferor. For example, a child that renounces an inheritance from a parent would be treated under the parent's will as having died before the parent.
The revisions include:
- Allowing a parent of a minor child to renounce a interest in property that would have passed to the child as a result of the parent's renunciation.
- Expanding the rights of fiduciaries (trustees, personal representatives, attorneys-in-fact) to renounce fiduciary powers and provides a method to have the Clerk of Superior Court approve the renunciation.
- Adding a section regarding spelling out the requirements of delivery of renunciation of different property interests or powers to third persons.
- Adding detail on the effect of renunciation for different types of property.
- Providing that a valid tax qualified disclaimer under federal tax law is effective as a renunciation under North Carolina law.
- Adding renunciation powers to the NC Short Form Power of Attorney.
What exactly is the time frame to renounce? Is it with the initial Application For Probate and Letters? Can it be anytime between the opening of probate and the final accounting?
RESPONSE: For a renunciation to be qualified for gift tax purposes, it must be within nine months within the date of death.
I am an only child who has an only son. My father is in the process of finalizing his will. At this point the will sets up a trust for me, with me being the trustee. If my son is 30 upon my death, the trust will end and he will be the recipient. Does this arrangement protect my interest in the event of a divorce?
RESPONSE: Probably. I cannot give you a definitive answer without reviewing the trust.
i wont none of my late fathers estate which part is a home that was just sold i want my brother to get my share what can i do
RESPONSE: Contact an estate lawyer about preparing and filing a renunciation and disclaimer with the probate court. If done properly, the renunciation will not be considered a gift to your brother.