(755 ILCS 5/2-7)
(from Ch. 110 1/2, par. 2-7)
(a) Right to Disclaim Interest in Property. A person
to whom any property or interest therein passes, by whatever means,
may disclaim the property or interest in whole or in part by delivering
or filing a written disclaimer as hereinafter provided. A disclaimer may
be of a fractional share or undivided interest, a specifically identifiable
asset, portion or amount, any limited interest or estate or any property
or interest derived through right of survivorship. A power (as defined
in "An Act Concerning Termination of Powers", approved May 25, 1943, as
amended) with respect to property shall be deemed to
be an interest in such property.
The representative of a decedent or ward may disclaim on behalf of the
decedent or ward with leave of court. The court may approve the disclaimer
by a representative of a decedent if it finds that the disclaimer benefits
the estate as a whole and those interested in the estate generally even
if the disclaimer alters the distribution of the property, part or interest
disclaimed. The court may approve the disclaimer by a representative of
a ward if it finds that it benefits those interested in the estate generally
and is not materially detrimental to the interests of the ward. A disclaimer
by a representative of a decedent or ward may be made without leave of court
if a will or other instrument signed by the decedent or ward designating
the representative specifically authorizes the representative to disclaim
without court approval.
The right to disclaim granted by this Section exists irrespective of any
limitation on the interest of the disclaimant in the nature of a spendthrift
provision or similar restriction.
(b) Form of Disclaimer. The disclaimer shall (1) describe the property
or part or interest disclaimed, (2) be signed by the disclaimant or his
representative and (3) declare the disclaimer and the extent thereof.
(c) Delivery of Disclaimer. The disclaimer shall be delivered to the
transferor or donor or his representative, or to the trustee or other person
who has legal title to the property, part or interest disclaimed, or, if
none of the foregoing is readily determinable, shall be either delivered
to a person having possession of the property, part or interest or who is
entitled thereto by reason of the disclaimer, or filed or recorded as hereinafter
provided. In the case of an interest passing by reason of the death of
any person, an executed counterpart of the disclaimer may be filed with
the clerk of the circuit court in the county in which the estate of the
decedent is administered, or, if administration has not been commenced,
in which it could be commenced. If an interest in real property is disclaimed,
an executed counterpart of the disclaimer may be recorded in the office
of the recorder in the county in which the real estate lies,
or, if the title to the real estate is registered under "An Act concerning
land titles", approved May 1, 1897, as amended, may
be filed in the office of the registrar of titles of such county.
(d) Effect of Disclaimer. Unless expressly provided otherwise in an instrument
transferring the property or creating the interest disclaimed, the property,
part or interest disclaimed shall descend or be distributed (1) if a present
interest (a) in the case of a transfer by reason of the death of any person,
as if the disclaimant had predeceased the decedent; (b) in the case of a
transfer by revocable instrument or contract, as if the disclaimant had predeceased
the date the maker no longer has the power to transfer to himself or another
the entire legal and equitable ownership of the property or interest; or
(c) in the case of any other inter vivos transfer, as if the disclaimant
had predeceased the date of the transfer; and (2) if a future interest,
as if the disclaimant had predeceased the event which determines that the
taker of the property or interest has become finally ascertained and his
interest has become indefeasibly fixed both in quality and quantity; and
in each case the disclaimer shall relate back to such date for all purposes.
A disclaimer of property or an interest in property shall not preclude
any disclaimant from receiving the same property in another capacity or
from receiving other interests in the property to which the disclaimer relates.
Unless expressly provided otherwise in an instrument transferring the property
or creating the interest disclaimed, a future interest limited to take effect
at or after the termination of the estate or interest disclaimed shall accelerate
and take effect in possession and enjoyment to the same extent as if the
disclaimant had died before the date to which the disclaimer relates back.
A disclaimer made pursuant to this Section shall be irrevocable and shall
be binding upon the disclaimant and all persons claiming by, through or
under the disclaimant.
(e) Waiver and Bar. The right to disclaim property or a part thereof or
an interest therein shall be barred by (1) a judicial sale of the property,
part or interest before the disclaimer is effected; (2) an assignment, conveyance,
encumbrance, pledge, sale or other transfer of the property, part or interest,
or a contract therefor, by the disclaimant or his representative; (3) a
written waiver of the right to disclaim; or (4) an acceptance of the property,
part or interest by the disclaimant or his representative. Any person may
presume, in the absence of actual knowledge to the contrary, that a disclaimer
delivered or filed as provided in this Section is a valid disclaimer which
is not barred by the preceding provisions of this paragraph.
A written waiver of the right to disclaim may be made by any person or
his representative and an executed counterpart of a waiver of the right
to disclaim may be recorded or filed, all in the same manner as provided
in this Section with respect to a disclaimer.
In every case, acceptance must be affirmatively proved in order to constitute
a bar to a disclaimer. An acceptance of property or an interest in property
shall include the taking of possession, the acceptance of delivery or the
receipt of benefits of the property or interest; except that (1) in the
case of an interest in joint tenancy with right of survivorship such acceptance
shall extend only to the fractional share of such property or interest determined
by dividing the number one by the number of joint tenants, and (2) in the
case of a ward, such acceptance shall extend only to property actually received
by or on behalf of the ward or his representative during his minority or
incapacity. The mere lapse of time or creation of an interest, in joint
tenancy with right of survivorship or otherwise, with or without knowledge
of the interest on the part of the disclaimant, shall not constitute acceptance
for purposes of this Section.
This Section does not abridge the right of any person to assign, convey,
release, renounce or disclaim any property or interest therein arising
under any other statute or which arose under prior law.
Any interest in real or personal property which exists on or after the
effective date of this Section may be disclaimed after that date in the
manner provided herein, but no interest which has arisen prior to that date
in any person other than the disclaimant shall be destroyed or diminished
by any action of the disclaimant taken pursuant to this Section.
(Source: P.A. 83-1362.)