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SUBSTITUTE
SENATE BILL 5197
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Passed
Legislature - 1999 Regular Session
State
of Washington 56th Legislature 1999 Regular Session
By
Read
first time 02/25/1999.
Making technical corrections to the disclaimer statute.
AN
ACT Relating to disclaimer of interests; amending RCW 11.86.041; and creating a
new section.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
11.86.041 and 1997 c 252 s 73 are each amended to read as follows:
(1)
Unless the instrument creating an interest directs to the contrary, the
interest disclaimed shall pass as if the beneficiary had died immediately prior
to the date of the transfer of the interest. The disclaimer shall relate back
to this date for all purposes.
(2)
((Unless the beneficiary is the surviving spouse of a deceased creator of
the interest, the beneficiary shall also be deemed to have disclaimed all
interests in the property, including all beneficial interests in any trust into
which the disclaimed property may pass. This subsection applies unless the
disclaimer specifically refers to this subsection and states to the contrary.))
Unless the beneficiary provides otherwise in the disclaimer, in addition to
the interests disclaimed, the beneficiary shall also be deemed to have
disclaimed the minimum of all interests in the disclaimed property necessary to
make the disclaimer a qualified disclaimer for purposes of section 2518 of the
Internal Revenue Code.
(3)
Any future interest taking effect in possession or enjoyment after termination
of the interest disclaimed takes effect as if the beneficiary had died prior to
the date of the beneficiary's final ascertainment as a beneficiary and the
indefeasible vesting of the interest.
(4)
The disclaimer is binding upon the beneficiary and all persons claiming through
or under the beneficiary.
(5)
Unless the instrument creating the interest directs to the contrary, a
beneficiary whose interest in a devise or bequest under a will has been
disclaimed shall be deemed to have died for purposes of RCW 11.12.110.
(6)
((In the case of a disclaimer that results in property passing to a trust
over which the disclaimant has any power to direct the beneficial enjoyment of
the disclaimed property, the disclaimant shall also be deemed to have
disclaimed any power to direct the beneficial enjoyment of the disclaimed
property, unless the power is limited by an ascertainable standard for the
health, education, support, or maintenance of any person as described in
section 2041 or 2514 of the Internal Revenue Code and the applicable
regulations adopted under those sections. This subsection applies unless the
disclaimer specifically refers to this subsection and states to the contrary.
This subsection shall not be deemed to otherwise prevent such a disclaimant
from acting as trustee or executor over disclaimed property.)) In the
case of a disclaimer of property over which the disclaimant has any power to
direct the beneficial enjoyment of the disclaimed property, the disclaimant
shall also be deemed to have disclaimed any power to direct the beneficial enjoyment
of the disclaimed property, unless the power is limited by an ascertainable
standard relating to the health, education, support, or maintenance of any
person as described in section 2041 or 2514 of the Internal Revenue Code and
applicable regulations adopted under those sections. This subsection applies
unless the disclaimer specifically provides otherwise. This subsection shall
not be deemed to otherwise prevent such a disclaimant from acting as trustee or
personal representative over disclaimed property.
NEW
SECTION. Sec. 2. This
act applies retroactively to all disclaimers made after December 31, 1997.
Passed the Senate March 9, 1999.
Passed the House April 7, 1999.
Approved by the Governor April
20, 1999.
Filed
in Office of Secretary of State April 20, 1999.
