2025 Session Last amended: 2012 session

§ 524.2-1104 — Tax-qualified Disclaimer

Plain-Language Summary

This section provides that if a disclaimer or transfer causes the interest to be treated under section 2518 of the federal Internal Revenue Code as never having passed to the person disclaiming it, then that disclaimer or transfer is effective as a disclaimer under Minnesota's disclaimer statutes (sections 524.2-1101 to 524.2-1116). In other words, an interest that already qualifies as a disclaimer for federal tax purposes is automatically recognized as an effective disclaimer under state law.

524.2-1104 TAX-QUALIFIED DISCLAIMER.

Notwithstanding any other provision of this chapter, other than section 524.2-1106, if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated pursuant to the provisions of section 2518 of the Internal Revenue Code of 1986, as defined in section 291.005, subdivision 1, clause (3), as never having been transferred to the disclaimant, then the disclaimer or transfer is effective as a disclaimer under sections 524.2-1101 to 524.2-1116.

History:

2009 c 67 s 4; 2012 c 143 art 4 s 2

History: History: 2009 c 67 s 4; 2012 c 143 art 4 s 2

Practical Notes

The rule runs from federal tax law to Minnesota law, not the other way around: meeting the federal Internal Revenue Code section 2518 standard makes a disclaimer effective under the state act, regardless of the act’s other requirements (except section 524.2-1106). It does not promise that satisfying the state act will qualify a disclaimer for federal tax treatment. Because the practical aim is usually to achieve a federally recognized disclaimer for estate and gift tax planning, work backward from the federal section 2518 requirements with a qualified estate planning attorney.

Source: Minnesota Office of the Revisor of Statutes