NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 371

SENATE BILL 117

 

 

AN ACT TO BE KNOWN AS THE RENUNCIATION OF TRANSFERS BY WILL, INTESTACY, APPOINTMENT OR INSURANCE CONTRACT ACT.

 

The General Assembly of North Carolina enacts:

 

Section 1.  The General Statutes of North Carolina are hereby amended by the addition of a new Chapter 31B to read as follows:

"Chapter 31B.

"§ 31B-1.  Right to renounce succession. — (a) A person who succeeds to a property interest as:

(1)        heir, or

(2)        next of kin, or

(3)        devisee, or

(4)        legatee, or

(5)        beneficiary of a life insurance policy who did not possess the incidents of ownership under the policy at the time of death of the insured, or

(6)        person succeeding to a renounced interest, or

(7)        beneficiary under a testamentary trust or under an inter-vivos trust which takes under a will, or

(8)        appointee under a power of appointment exercised by a testamentary instrument, or

(9)        the duly authorized or appointed guardian with the prior or subsequent approval by the clerk of superior court, or by the resident judge of the superior court of any of the above, or

(10)      the personal representative appointed under Chapter 28A of any of the above,

or the attorney in fact of any of the above may renounce in whole or in part the right of succession to any property or interest therein, including a future interest, by filing a written instrument under the provisions of this Chapter. Provided, however, there shall be no right of partial renunciation if the decedent or donee of the power expressly so provided in the instrument creating the interest.

(b)        In no event shall the persons who succeed to the renounced interest receive from the renouncement a greater share than the renouncer would have received.

(c)        The instrument shall (1) describe the property or interest renounced, (2) declare the renunciation and extent thereof, (3) be signed and acknowledged by the person authorized to renounce.

"§ 31B-2.  Time and place of filing. — (a) An instrument renouncing a present interest shall be filed not later than seven months after the death of the decedent or the donee of the power.

(b)        An instrument renouncing a future interest shall be filed not later than six months after the event by which the taker of the property or interest is finally ascertained and his interest indefeasibly vested and he is entitled to possession.

(c)        The renunciation shall be filed with the clerk of court of the county in which proceedings have been commenced for the administration of the estate of the deceased owner or deceased donee of the power or, if they have not been commenced, in which they could be commenced. Every renunciation provided for in this subsection shall be recorded and cross-indexed by the clerk in a record entitled 'Renunciation'. The record of renunciation shall contain:

(1)        The name of the renouncer;

(2)        The name of the estate affected by the renunciation;

(3)        The date of the death of the decedent or donee of the power and the date of renunciation.

A copy of the renunciation shall be delivered in person or mailed by registered or certified mail to any personal representative, or other fiduciary of the decedent or donee of the power. If the property interest renounced includes any proceeds of a life insurance policy being renounced pursuant to G.S. 31B-l(a)(5) the person renouncing shall mail, by registered or certified mail, a copy of the renunciation to the insurance company issuing the policy.

(d)        If real property or an interest therein is renounced, a copy of the renunciation shall also be filed for recording in the office of the register of deeds of all counties wherein any part of the interest renounced is situated. The renunciation shall be indexed in the grantor's index under (1) the name of the deceased owner or donee of the power, and (2) the name of the person renouncing. The renunciation of an interest, or a part thereof, in real property shall not be effective to renounce such interest until a copy of the renunciation is filed for recording in the office of the register of deeds in the county wherein such interest or part thereof is situated.

"§ 31B-3.  Effect of renunciation. — Unless the decedent or donee of the power has otherwise provided in the instrument creating the interest, the property or interest renounced devolves as if the renouncer had predeceased the decedent or, if the renouncer is designated to take under a power of appointment exercised by a testamentary instrument, as if the renouncer had predeceased the donee of the power. A future interest that takes effect in possession or enjoyment after the termination of the estate or interest renounced takes effect as if the renouncer had predeceased the decedent or the donee of the power. A renunciation relates back for all purposes to the date of the death of the decedent or the donee of the power.

"§ 31B-4.  Waiver and bar. — (a) The right to renounce property or an interest therein is barred by

(1)        an assignment, conveyance, encumbrance, pledge, or transfer of the property or interest, or a contract therefor by the person authorized to renounce,

(2)        a written waiver of the right to renounce,

(3)        an acceptance of the property or interest or benefit thereunder, or

(4)        a sale of the property or interest under judicial sale made before the renunciation is effected.

(b)        The renunciation or the written waiver of the right to renounce is binding upon the renouncer or person waiving and all persons claiming through or under him.

"§ 31B-5.  Exclusiveness of remedy. — This act does not abridge the right of a person to waive, release, disclaim or renounce property or an interest therein under any other statute or as otherwise provided by law.

"§ 3lB-6.  Application. — A present interest in property existing on the effective date of this act as to which the time for filing a renunciation under this act has not expired may be renounced within six months after the effective date of this act. A future interest in property existing on the effective date of this act as to which the time for filing a renunciation under this act has not expired may be renounced within six months after the effective date of this act or within six months after the future interest has become indefeasibly vested and the taker is entitled to possession, whichever is later.

"§ 31B-7.  Short title. — This Chapter may be cited as the Renunciation of Transfers by Will, Intestacy, Appointment or Insurance Contract Act."

Sec. 2.  G.S. 29-10 is hereby amended to read as follows:

"§ 29-10.  Renunciation. — Renunciation of an intestate share shall be as provided for in Chapter 31B of the General Statutes."

Sec. 3.  G.S. 31-42 is hereby amended by adding a new subsection (d) to read as follows:

"(d)      Renunciation of a devise or legacy shall be as provided for in Chapter 31B of the General Statutes."

Sec. 4.  G.S. 28A-13-3(a) is hereby amended by adding a new subdivision (33) to read as follows:

"(33)    To renounce in accordance with the provisions of Chapter 31B of the General Statutes."

Sec. 5.  Chapter 58 of the General Statutes is hereby amended by adding a new section G.S. 58-205.2 to read as follows:

"§ 58-205.2.  Renunciation. — A beneficiary of a life insurance policy who did not possess the incidents of ownership under the policy at the time of death of the insured may renounce as provided in Chapter 31B of the General Statutes."

Sec. 6.  This act shall become effective on October 1, 1975.

In the General Assembly read three times and ratified, this the 26th day of May, 1975.