Information on Disclaimer Doctrines

If a potential beneficiary disclaims a piece of property, then that piece of property would pass to the next heir as if disclaimant predeceased the testator. There are two different legal documents that are not well know but that can affect this process if the disclaimant was set to receive an interest in a trust or a life estate in real property. 

First, there is the doctrine of acceleration, which allows the remaindermen under the trust to immediately take the remaining interest that the trust would otherwise provide for them. This does not apply when the disclaimed interest is a life estate.

Second,the doctrine of next eventual estate provides a solution for when a gap in the remainderman occurs, and the trust is otherwise silent about who should receive the property. The doctrine states that the interest should pass to the next person who would be entitled to receive.

Both of these doctrines are intertwined in state law, therefore, it is important to check any applicable state law.

See Charles Rubin, Some Disclaimer Doctrines You May Not Know Much About, Rubin on Tax, Apr. 27, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.