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--- version:As IntroducedOpens in a new window+++ version:(document, no version)@@ -1,376 +1,15 @@-BILL AS INTRODUCED H.546-2026 Page 1 of 16+H.546-VT LEG #385911 v.1-H.546 1-Introduced by Representative LaLonde of South Burlington 2-Referred to Committee on 3-Date: 4-Subject: Decedents’ estates; Uniform Disclaimer of Property Interests Act 5-Statement of purpose of bill as introduced: This bill proposes to enact the 6-Uniform Disclaimer of Property Interests Act in Vermont. 7-An act relating to the Uniform Disclaimer of Property Interests Act 8-It is hereby enacted by the General Assembly of the State of Vermont: 9-Sec. 1. 14 V.S.A. chapter 129 is added to read: 10-CHAPTER 129. VERMONT DISCLAIMER OF PROPERTY INTERESTS 11-ACT 12-§ 4101. SHORT TITLE 13-This chapter may be cited as the “Vermont Uniform Disclaimer of Property 14-Interests Act.” 15-§ 4102. DEFINITIONS 16-As used in this chapter: 17-(1) “Disclaimant” means the person to whom a disclaimed interest or 18-power would have passed had the disclaimer not been made. 19-BILL AS INTRODUCED H.546-2026 Page 2 of 16+An act relating to the Uniform Disclaimer of Property Interests Act-VT LEG #385911 v.1-(2) “Disclaimed interest” means the interest that would have passed to 1-the disclaimant had the disclaimer not been made. 2-(3) “Disclaimer” means the refusal to accept an interest in or power over 3-property. 4-(4) “Fiduciary” means a personal representative, trustee, agent acting 5-under a power of attorney, or other person authorized to act as a fiduciary with 6-respect to the property of another person. 7-(5) “Jointly held property” means property held in the name of two or 8-more persons under an arrangement in which all holders have concurrent 9-interests and under which the last surviving holder is entitled to the whole of 10-the property. 11-(6) “Person” means an individual, corporation, business trust, estate, 12-trust, partnership, limited liability company, association, joint venture, 13-government, governmental subdivision, governmental agency, governmental 14-instrumentality, public corporation, or any other legal or commercial entity. 15-(7) “Personal representative” means a duly appointed representative of a 16-probate estate, such as an executor or administrator. 17-(8) “State” means a state of the United States, the District of Columbia, 18-Puerto Rico, the United States Virgin Islands, or any territory or insular 19-possession subject to the jurisdiction of the United States. The term includes 20-BILL AS INTRODUCED H.546-2026 Page 3 of 16+Sponsors:-VT LEG #385911 v.1-an Indian tribe or band, or Alaskan native village, recognized by federal law or 1-formally acknowledged by a state. 2-(9) “Trust” means: 3-(A) an express trust, charitable or noncharitable, with additions 4-thereto, whenever and however created; or 5-(B) a trust created pursuant to a statute, judgment, or decree that 6-requires the trust to be administered in the manner of an express trust. 7-§ 4103. SCOPE 8-This chapter applies to disclaimers of any interest in or power over 9-property, whenever created. 10-§ 4104. SUPPLEMENTED BY OTHER LAW 11-(a) Unless displaced by a provision of this chapter, the principles of law 12-and equity supplement this chapter. 13-(b) This chapter does not limit any right of a person to waive, release, 14-disclaim, or renounce an interest in or power over property under a law other 15-than this chapter. 16-§ 4105. POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN 17- IRREVOCABLE 18-(a) A person may disclaim, in whole or in part, any interest in or power 19-over property, including a power of appointment. A person may disclaim the 20-BILL AS INTRODUCED H.546-2026 Page 4 of 16+Rep. Martin LaLonde,-VT LEG #385911 v.1-interest or power even if its creator imposed a spendthrift provision or similar 1-restriction on transfer or a restriction or limitation on the right to disclaim. 2-(b) Except to the extent a fiduciary’s right to disclaim is expressly 3-restricted or limited by another statute of this State or by the instrument 4-creating the fiduciary relationship, a fiduciary may disclaim, in whole or in 5-part, any interest in or power over property, including a power of appointment, 6-whether acting in a personal or representative capacity. A fiduciary may 7-disclaim the interest or power even if its creator imposed a spendthrift 8-provision or similar restriction on transfer or a restriction or limitation on the 9-right to disclaim, or an instrument other than the instrument that created the 10-fiduciary relationship imposed a restriction or limitation on the right to 11-disclaim. 12-(c) To the extent that there is no material conflict of interest, a parent, as 13-defined in 15C V.S.A. § 102(16), can disclaim on behalf of the parent’s minor 14-or incapacitated child, if a guardian has not been or is not required to be 15-appointed for the child. 16-(d) To be effective, a disclaimer shall be in a writing or other record, 17-declare the disclaimer, describe the interest or power disclaimed, be signed, 18-and be delivered or filed in the manner provided in section 4112 of this title. 19-As used in this subsection: 20-BILL AS INTRODUCED H.546-2026 Page 5 of 16+Location: House Committee on Judiciary-VT LEG #385911 v.1-(1) “Record” means information that is inscribed on a tangible medium 1-or that is stored in an electronic or other medium and is retrievable in 2-perceivable form. 3-(2) “Signed” means: 4-(A) by the person making the disclaimer, or by another individual 5-directed by the person making the disclaimer to sign the name of the person 6-making the disclaimer in the presence of the person making the disclaimer and 7-two credible witnesses who shall also sign the record in the presence of all 8-parties hereto; and 9-(B) with present intent to authenticate or adopt a record to: 10-(i) execute or adopt a tangible symbol; or 11-(ii) attach to or logically associate with the record an electronic 12-sound, symbol, or process. 13-(e) A partial disclaimer may be expressed as a fraction, percentage, 14-monetary amount, term of years, limitation of a power, or any other interest or 15-estate in the property. 16-(f) A disclaimer becomes irrevocable when it is delivered or filed pursuant 17-to section 4112 of this title or when it becomes effective as provided in 18-sections 4107–4111 of this title, whichever occurs later. 19-(g) A disclaimer made under this chapter is not a transfer, assignment, or 20-release. 21-BILL AS INTRODUCED H.546-2026 Page 6 of 16+Last Recorded Action: 1/6/2026 - Read first time and referred to the Committee on Judiciary-VT LEG #385911 v.1-§ 4106. DISCLAIMER OF INTEREST IN PROPERTY 1-(a) As used in this section: 2-(1) “Future interest” means an interest that takes effect in possession or 3-enjoyment, if at all, later than the time of its creation. 4-(2) “Time of distribution” means the time when a disclaimed interest 5-would have taken effect in possession or enjoyment. 6-(b) Except for a disclaimer governed by section 4107 or 4108 of this title, 7-the following rules apply to a disclaimer of an interest in property: 8-(1) The disclaimer takes effect as of the time the instrument creating the 9-interest becomes irrevocable, or, if the interest arose under the law of intestate 10-succession, as of the time of the intestate’s death. 11-(2) The disclaimed interest passes according to any provision in the 12-instrument creating the interest providing for the disposition of the interest, 13-should it be disclaimed, or of disclaimed interests in general. 14-(3) If the instrument does not contain a provision described in 15-subdivision (2) of this subsection, the following rules apply: 16-(A) If the disclaimant is not an individual, the disclaimed interest 17-passes as if the disclaimant did not exist. 18-(B) If the disclaimant is an individual, except as otherwise provided 19-in subdivisions (C) and (D) of this subdivision (3), the disclaimed interest 20-BILL AS INTRODUCED H.546-2026 Page 7 of 16+Committee Activity - Witnesses Who Testified-VT LEG #385911 v.1-passes as if the disclaimant had died immediately before the time of 1-distribution. 2-(C) If by law or under the instrument, the descendants of the 3-disclaimant would share in the disclaimed interest by any method of 4-representation had the disclaimant died before the time of distribution, the 5-disclaimed interest passes only to the descendants of the disclaimant who 6-survive the time of distribution. 7-(D) If the disclaimed interest would pass to the disclaimant’s estate 8-had the disclaimant died before the time of distribution, the disclaimed interest 9-instead passes by representation to the descendants of the disclaimant who 10-survive the time of distribution. If no descendant of the disclaimant survives 11-the time of distribution, the disclaimed interest passes to those persons, 12-including the state but excluding the disclaimant, and in such shares as would 13-succeed to the transferor’s intestate estate under the intestate succession law of 14-the transferor’s domicile had the transferor died at the time of distribution. 15-However, if the transferor’s surviving spouse is living but is remarried at the 16-time of distribution, the transferor is deemed to have died unmarried at the 17-time of distribution. 18-(4) Upon the disclaimer of a preceding interest, a future interest held by 19-a person other than the disclaimant takes effect as if the disclaimant had died 20-BILL AS INTRODUCED H.546-2026 Page 8 of 16--VT LEG #385911 v.1-or ceased to exist immediately before the time of distribution, but a future 1-interest held by the disclaimant is not accelerated in possession or enjoyment. 2-§ 4107. DISCLAIMER OF RIGHTS OF SURVIVORSHIP IN JOINTLY 3- HELD PROPERTY 4-(a) Upon the death of a holder of jointly held property, a surviving holder 5-may disclaim, in whole or part, the greater of: 6-(1) a fractional share of the property determined by dividing the number 7-one by the number of joint holders alive immediately before the death of the 8-holder to whose death the disclaimer relates; or 9-(2) all of the property except that part of the value of the entire interest 10-attributable to the contribution furnished by the disclaimant. 11-(b) A disclaimer under subsection (a) of this section takes effect as of the 12-death of the holder of jointly held property to whose death the disclaimer 13-relates. 14-(c) An interest in jointly held property disclaimed by a surviving holder of 15-the property passes as if the disclaimant predeceased the holder to whose death 16-the disclaimer relates. 17-§ 4108. DISCLAIMER OF INTEREST BY TRUSTEE 18-If a trustee disclaims an interest in property that otherwise would have 19-become trust property, the interest does not become trust property. 20-BILL AS INTRODUCED H.546-2026 Page 9 of 16--VT LEG #385911 v.1-§ 4109. DISCLAIMER OF POWER OF APPOINTMENT OR OTHER 1- POWER NOT HELD IN FIDUCIARY CAPACITY 2-If a holder disclaims a power of appointment or other power not held in a 3-fiduciary capacity, the following rules apply: 4-(1) If the holder has not exercised the power, the disclaimer takes effect 5-as of the time the instrument creating the power becomes irrevocable. 6-(2) If the holder has exercised the power and the disclaimer is of a 7-power other than a presently exercisable general power of appointment, the 8-disclaimer takes effect immediately after the last exercise of the power. 9-(3) The instrument creating the power is construed as if the power 10-expired when the disclaimer became effective. 11-§ 4110. DISCLAIMER BY APPOINTEE, OBJECT, OR TAKER IN 12- DEFAULT OF EXERCISE OF POWER OF APPOINTMENT 13-(a) A disclaimer of an interest in property by an appointee of a power of 14-appointment takes effect as of the time the instrument by which the holder 15-exercises the power becomes irrevocable. 16-(b) A disclaimer of an interest in property by a permissible appointee or 17-taker in default of an exercise of a power of appointment takes effect as of the 18-time the instrument creating the power becomes irrevocable. 19-BILL AS INTRODUCED H.546-2026 Page 10 of 16--VT LEG #385911 v.1-§ 4111. DISCLAIMER OF POWER HELD IN FIDUCIARY CAPACITY 1-(a) If a fiduciary disclaims a power held in a fiduciary capacity that has not 2-been exercised, the disclaimer takes effect as of the time the instrument 3-creating the power becomes irrevocable. 4-(b) If a fiduciary disclaims a power held in a fiduciary capacity that has 5-been exercised, the disclaimer takes effect immediately after the last exercise 6-of the power. 7-(c) A disclaimer under this section is effective as to another fiduciary if the 8-disclaimer so provides and the fiduciary disclaiming has the authority to bind 9-the estate, trust, or other person for whom the fiduciary is acting. 10-§ 4112. DELIVERY OR FILING 11-(a) As used in this section, “beneficiary designation” means an instrument, 12-other than an instrument creating a trust, naming the beneficiary of: 13-(1) an annuity or insurance policy; 14-(2) an account with a designation for payment on death; 15-(3) a security registered in beneficiary form; 16-(4) a pension, profit-sharing, retirement, or other employment-related 17-benefit plan; or 18-(5) any other nonprobate transfer at death, including an enhanced life 19-estate deed created pursuant to 27 V.S.A. chapter 6. 20-BILL AS INTRODUCED H.546-2026 Page 11 of 16--VT LEG #385911 v.1-(b) Subject to subsections (c)–(m) of this section, delivery of a disclaimer 1-may be effected by personal delivery, first-class mail, or any other method 2-likely to result in its receipt. 3-(c) In the case of an interest created under the law of intestate succession or 4-an interest created by will, other than an interest in a testamentary trust: 5-(1) the disclaimer shall be delivered to the personal representative of the 6-decedent’s estate; or 7-(2) if no personal representative is then serving, the disclaimer shall be 8-filed with a court having jurisdiction to appoint the personal representative. 9-(d) In the case of an interest in a testamentary trust: 10-(1) the disclaimer shall be delivered to the trustee then serving, or if no 11-trustee is then serving, to the personal representative of the decedent’s estate; 12-or 13-(2) if no personal representative is then serving, the disclaimer shall be 14-filed with a court having jurisdiction to enforce the trust. 15-(e) In the case of an interest in an inter vivos trust: 16-(1) the disclaimer must be delivered to the trustee then serving; 17-(2) if no trustee is then serving, the disclaimer shall be filed with a court 18-having jurisdiction to enforce the trust; or 19-BILL AS INTRODUCED H.546-2026 Page 12 of 16--VT LEG #385911 v.1-(3) if the disclaimer is made before the time the instrument creating the 1-trust becomes irrevocable, the disclaimer shall be delivered to the settlor of a 2-revocable trust or the transferor of the interest. 3-(f) In the case of an interest created by a beneficiary designation that is 4-disclaimed before the designation becomes irrevocable, the disclaimer shall be 5-delivered to the person making the beneficiary designation. 6-(g) In the case of an interest in personal property created by a beneficiary 7-designation that is disclaimed after the designation becomes irrevocable, the 8-disclaimer shall be delivered to the person obligated to distribute the interest. 9-(h) If real property or an interest in real property is disclaimed, a copy of 10-the disclaimer shall be recorded in the land records of the town in which the 11-property or interest disclaimed is located. 12-(i) In the case of a disclaimer by a surviving holder of jointly held property, 13-the disclaimer shall be delivered to the person to whom the disclaimed interest 14-passes. 15-(j) In the case of a disclaimer by a permissible appointee or taker in default 16-of exercise of a power of appointment at any time after the power was created: 17-(1) the disclaimer shall be delivered to the holder of the power or to the 18-fiduciary acting under the instrument that created the power; or 19-(2) if no fiduciary is then serving, the disclaimer shall be filed with a 20-court having authority to appoint the fiduciary. 21-BILL AS INTRODUCED H.546-2026 Page 13 of 16--VT LEG #385911 v.1-(k) In the case of a disclaimer by an appointee of a nonfiduciary power of 1-appointment: 2-(1) the disclaimer shall be delivered to the holder, the personal 3-representative of the holder’s estate or to the fiduciary under the instrument 4-that created the power; or 5-(2) if no fiduciary is then serving, the disclaimer shall be filed with a 6-court having authority to appoint the fiduciary. 7-(l) In the case of a disclaimer by a fiduciary of a power over a trust or 8-estate, the disclaimer shall be delivered as provided in subsection (c), (d), or 9-(e) of this section, as if the power disclaimed were an interest in property. 10-(m) In the case of a disclaimer of a power by an agent, the disclaimer shall 11-be delivered to the principal or the principal’s representative. 12-§ 4113. WHEN DISCLAIMER BARRED OR LIMITED 13-(a) A disclaimer is barred by a written waiver of the right to disclaim. 14-(b) A disclaimer of an interest in property is barred if any of the following 15-events occur before the disclaimer becomes effective: 16-(1) the disclaimant accepts the interest sought to be disclaimed; 17-(2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or 18-transfers the interest sought to be disclaimed or contracts to do so; or 19-(3) a judicial sale of the interest sought to be disclaimed occurs. 20-BILL AS INTRODUCED H.546-2026 Page 14 of 16--VT LEG #385911 v.1-(c) A disclaimer, in whole or part, of the future exercise of a power held in 1-a fiduciary capacity is not barred by its previous exercise. 2-(d) A disclaimer, in whole or part, of the future exercise of a power not 3-held in a fiduciary capacity is not barred by its previous exercise unless the 4-power is exercisable in favor of the disclaimant. 5-(e) A disclaimer is barred or limited if so provided by law other than this 6-chapter. 7-(f) A disclaimer of a power over property that is barred by this section is 8-ineffective. A disclaimer of an interest in property that is barred by this section 9-takes effect as a transfer of the interest disclaimed to the persons who would 10-have taken the interest under this chapter had the disclaimer not been barred. 11-§ 4114. TAX QUALIFIED DISCLAIMER 12-Notwithstanding any other provision of this chapter, if as a result of a 13-disclaimer or transfer the disclaimed or transferred interest is treated pursuant 14-to the provisions of the Internal Revenue Code, as may be amended, or any 15-regulations promulgated under it, as never having been transferred to the 16-disclaimant, then the disclaimer or transfer is effective as a disclaimer under 17-this chapter. 18-§ 4115. RECORDING OF DISCLAIMER 19-If an instrument transferring an interest in or power over property subject to 20-a disclaimer is required or permitted by law to be filed, recorded, or registered, 21-BILL AS INTRODUCED H.546-2026 Page 15 of 16--VT LEG #385911 v.1-then the disclaimer may be so filed, recorded, or registered. Failure to file, 1-record, or register the disclaimer does not affect its validity as between the 2-disclaimant and persons to whom the property interest or power passes by 3-reason of the disclaimer. 4-§ 4116. APPLICATION TO EXISTING RELATIONSHIPS 5-Except as otherwise provided in section 4113 of this title, an interest in or 6-power over property existing on the effective date of this chapter as to which 7-the time for delivering or filing a disclaimer under law superseded by this 8-chapter has not expired may be disclaimed after the effective date of this 9-chapter. 10-§ 4117. RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND 11- NATIONAL COMMERCE ACT 12-This chapter modifies, limits, and supersedes the federal Electronic 13-Signatures in Global and National Commerce Act (15 U.S.C. § 7001, et seq.) 14-but does not modify, limit, or supersede Section 101(c) of that act (15 U.S.C. 15-§ 7001(c)) or authorize electronic delivery of any of the notices described in 16-Section 103(b) of that act (15 U.S.C. § 7003(b)). 17-§ 4118. UNIFORMITY OF APPLICATION AND CONSTRUCTION 18-In applying and construing this uniform act, consideration shall be given to 19-the need to promote uniformity of the law with respect to its subject matter 20-among states that enact it. 21-BILL AS INTRODUCED H.546-2026 Page 16 of 16--VT LEG #385911 v.1-§ 4119. SEVERABILITY CLAUSE 1-If any provision of this chapter or its application to any person or 2-circumstance is held invalid, the invalidity does not affect other provisions or 3-applications of this chapter that can be given effect without the invalid 4-provision or application, and to this end the provisions of this chapter are 5-severable. 6-Sec. 2. REPEAL 7-14 V.S.A. chapter 83 (Uniform Disclaimer of Property Interests Act) is 8-repealed. 9-Sec. 3. EFFECTIVE DATE 10-This act shall take effect on passage. 11+Regular Session 2025-2026
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