My deceased father has an account containing TIPS. My mother is listed as the Secondary Owner. We want to move these assets to a Bypass Trust account. I was told my mother could write a disclaimer on the assets. Is there a standard form to create the disclaimer because we are having a hard time finding a lawyer to do it. Also the TIPS account is at Treasury Direct. Do we have to file the disclaimer with them or where do we file it?Thanks
Under the internal revenue code, 26 U.S.C. sec. 2518(b), a qualified disclaimer has several requirements, none of which is that you file the document in public records. The disclaimer, of course, will need to be provided to the account manager, so they can then make a designation that the account is owned by any backup owner/beneficiary (other than your mother). The owner will likely be the estate, so you'll have to probate it. Your father's pour over will (he should have one since he had a trust) will put the account in the trust and the trust terms will determine whether it goes to the bypass trust or marital trust (if to marital trust, your mother just disclaims that portion of the marital trust).
Here is a link to the text of the statute:
New Jersey statute, 3B:9-3, requires the following concerning disclaimers:
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