Also known as: disclaimer doctrines · disclaimer
Written by attorneys · grounded in primary & secondary sources — see below
A doctrine permitting a party entitled to receive a benefit, power, or interest under a contract or donative instrument to renounce it within a reasonable time after learning of its existence and terms. The disclaimer renders any corresponding duty inoperative from the beginning or prevents acquisition of the power or interest altogether. Acceptance or disclaimer is irrevocable once made.
Delta Dynamics contracted with Dominion Capital to pay a sum to Dolores Diaz if certain milestones were met. Dolores learned of the arrangement but promptly notified both parties in writing that she disclaimed any right to the payment. Because her disclaimer occurred within a reasonable time and before any assent, the duty owed to her became inoperative from the outset, freeing Dominion Capital from any obligation to pay her.
Derek Douglas was named donee of a power of appointment over certain real property in a trust instrument. Upon learning of the power, Derek executed and recorded a written disclaimer refusing to accept it. The disclaimer prevented Derek from acquiring the power, so the property passed instead according to the default provisions in favor of the takers in default.
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After a work assignment dispute arose between two unions at a bottling plant, one union formally disclaimed any claim to the disputed tasks. The disclaimer eliminated the jurisdictional conflict, causing the agency proceeding to terminate because no rival claims remained for adjudication.
A disclaimer must occur within a reasonable time after the party learns of the existence and terms of the benefit, power, or interest. Timely action renders the duty inoperative from the beginning or prevents acquisition altogether.
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No. Once a party accepts or disclaims, the action is irrevocable and cannot be withdrawn.
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The interest passes as if the disclaimant had predeceased the decedent or as otherwise provided by the governing instrument or statute, without allowing the disclaimant to redirect it to chosen recipients.
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No. A disclaimer under state law does not prevent attachment of a federal tax lien because the taxpayer's state-law right to the property still constitutes property or rights to property for federal tax purposes.
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It may remain valid if union officers did not condone or affirmatively support the members' claims, allowing the disclaimer to eliminate the jurisdictional dispute.
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