S 179

No. 123  Page 1 of 15
2026
No. 123. An act relating to the Uniform Disclaimer of Property Interests
Act.
                                    (S.179)
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 14 V.S.A. chapter 129 is added to read:
 CHAPTER 129. VERMONT DISCLAIMER OF PROPERTY INTERESTS
                                      ACT
§ 4101. SHORT TITLE
   This chapter may be cited as the “Vermont Uniform Disclaimer of Property
Interests Act.”
§ 4102. DEFINITIONS
   As used in this chapter:
      (1) “Disclaimant” means the person to whom a disclaimed interest or
power would have passed had the disclaimer not been made.
      (2) “Disclaimed interest” means the interest that would have passed to
the disclaimant had the disclaimer not been made.
      (3) “Disclaimer” means the refusal to accept an interest in or power over
property.
      (4) “Fiduciary” means a personal representative, trustee, agent acting
under a power of attorney, or other person authorized to act as a fiduciary with
respect to the property of another person.
      (5) “Jointly held property” means property held in the name of two or
more persons under an arrangement in which all holders have concurrent
                                                                  VT LEG #390168 v.1
No. 123  Page 2 of 15
2026
interests and under which the last surviving holder is entitled to the whole of
the property.
      (6) “Person” means an individual, corporation, business trust, estate,
trust, partnership, limited liability company, association, joint venture,
government, governmental subdivision, governmental agency, governmental
instrumentality, public corporation, or any other legal or commercial entity.
      (7) “Personal representative” means a duly appointed representative of a
probate estate, such as an executor or administrator.
      (8) “State” means a state of the United States, the District of Columbia,
Puerto Rico, the United States Virgin Islands, or any territory or insular
possession subject to the jurisdiction of the United States. The term includes
an Indian tribe or band, or Alaskan native village, recognized by federal law or
formally acknowledged by a state.
      (9) “Trust” means:
          (A) an express trust, charitable or noncharitable, with additions
thereto, whenever and however created; or
          (B) a trust created pursuant to a statute, judgment, or decree that
requires the trust to be administered in the manner of an express trust.
§ 4103. SCOPE
   This chapter applies to disclaimers of any interest in or power over
property, whenever created.
                                                                    VT LEG #390168 v.1
No. 123  Page 3 of 15
2026
§ 4104. SUPPLEMENTED BY OTHER LAW
   (a) Unless displaced by a provision of this chapter, the principles of law
and equity supplement this chapter.
   (b) This chapter does not limit any right of a person to waive, release,
disclaim, or renounce an interest in or power over property under a law other
than this chapter.
§ 4105. POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN
          IRREVOCABLE
   (a) A person may disclaim, in whole or in part, any interest in or power
over property, including a power of appointment. A person may disclaim the
interest or power even if its creator imposed a spendthrift provision or similar
restriction on transfer or a restriction or limitation on the right to disclaim.
   (b) Except to the extent a fiduciary’s right to disclaim is expressly
restricted or limited by another statute of this State or by the instrument
creating the fiduciary relationship, a fiduciary may disclaim, in whole or in
part, any interest in or power over property, including a power of appointment,
whether acting in a personal or representative capacity. A fiduciary may
disclaim the interest or power even if its creator imposed a spendthrift
provision or similar restriction on transfer or a restriction or limitation on the
right to disclaim, or an instrument other than the instrument that created the
fiduciary relationship imposed a restriction or limitation on the right to
disclaim.
                                                                     VT LEG #390168 v.1
No. 123  Page 4 of 15
2026
   (c) To the extent that there is no material conflict of interest, a parent, as
defined in 15C V.S.A. § 102(16), can disclaim on behalf of the parent’s minor
child, if a guardian has not been or is not required to be appointed for the child.
   (d) To be effective, a disclaimer shall be in a writing or other record,
declare the disclaimer, describe the interest or power disclaimed, be signed,
and be delivered or filed in the manner provided in section 4112 of this title.
As used in this subsection:
      (1) “Record” means information that is inscribed on a tangible medium
or that is stored in an electronic or other medium and is retrievable in
perceivable form.
      (2) “Signed” means:
          (A) by the person making the disclaimer, or by another individual
directed by the person making the disclaimer to sign the name of the person
making the disclaimer in the presence of the person making the disclaimer and
two credible witnesses who shall also sign the record in the presence of all
parties hereto; and
          (B) with present intent to authenticate or adopt a record to:
             (i) execute or adopt a tangible symbol; or
             (ii) attach to or logically associate with the record an electronic
sound, symbol, or process.
                                                                     VT LEG #390168 v.1
No. 123  Page 5 of 15
2026
   (e) A partial disclaimer may be expressed as a fraction, percentage,
monetary amount, term of years, limitation of a power, or any other interest or
estate in the property.
   (f) A disclaimer becomes irrevocable when it is delivered or filed pursuant
to section 4112 of this title or when it becomes effective as provided in
sections 4107–4111 of this title, whichever occurs later.
   (g) A disclaimer made under this chapter is not a transfer, assignment, or
release.
§ 4106. DISCLAIMER OF INTEREST IN PROPERTY
   (a) As used in this section:
      (1) “Future interest” means an interest that takes effect in possession or
enjoyment, if at all, later than the time of its creation.
      (2) “Time of distribution” means the time when a disclaimed interest
would have taken effect in possession or enjoyment.
   (b) Except for a disclaimer governed by section 4107 or 4108 of this title,
the following rules apply to a disclaimer of an interest in property:
      (1) The disclaimer takes effect as of the time the instrument creating the
interest becomes irrevocable, or, if the interest arose under the law of intestate
succession, as of the time of the intestate’s death.
      (2) The disclaimed interest passes according to any provision in the
instrument creating the interest providing for the disposition of the interest,
should it be disclaimed, or of disclaimed interests in general.
                                                                    VT LEG #390168 v.1
No. 123  Page 6 of 15
2026
      (3) If the instrument does not contain a provision described in
subdivision (2) of this subsection, the following rules apply:
          (A) If the disclaimant is not an individual, the disclaimed interest
passes as if the disclaimant did not exist.
          (B) If the disclaimant is an individual, except as otherwise provided
in subdivisions (C) and (D) of this subdivision (3), the disclaimed interest
passes as if the disclaimant had died immediately before the time of
distribution.
          (C) If by law or under the instrument, the descendants of the
disclaimant would share in the disclaimed interest by any method of
representation had the disclaimant died before the time of distribution, the
disclaimed interest passes only to the descendants of the disclaimant who
survive the time of distribution.
          (D) If the disclaimed interest would pass to the disclaimant’s estate
had the disclaimant died before the time of distribution, the disclaimed interest
instead passes by representation to the descendants of the disclaimant who
survive the time of distribution. If no descendant of the disclaimant survives
the time of distribution, the disclaimed interest passes to those persons,
including the state but excluding the disclaimant, and in such shares as would
succeed to the transferor’s intestate estate under the intestate succession law of
the transferor’s domicile had the transferor died at the time of distribution.
However, if the transferor’s surviving spouse is living but is remarried at the
                                                                   VT LEG #390168 v.1
No. 123  Page 7 of 15
2026
time of distribution, the transferor is deemed to have died unmarried at the
time of distribution.
      (4) Upon the disclaimer of a preceding interest, a future interest held by
a person other than the disclaimant takes effect as if the disclaimant had died
or ceased to exist immediately before the time of distribution, but a future
interest held by the disclaimant is not accelerated in possession or enjoyment.
§ 4107. DISCLAIMER OF RIGHTS OF SURVIVORSHIP IN JOINTLY
           HELD PROPERTY
   (a) Upon the death of a holder of jointly held property, a surviving holder
may disclaim, in whole or part, the greater of:
      (1) a fractional share of the property determined by dividing the number
one by the number of joint holders alive immediately before the death of the
holder to whose death the disclaimer relates; or
      (2) all of the property except that part of the value of the entire interest
attributable to the contribution furnished by the disclaimant.
   (b) A disclaimer under subsection (a) of this section takes effect as of the
death of the holder of jointly held property to whose death the disclaimer
relates.
   (c) An interest in jointly held property disclaimed by a surviving holder of
the property passes as if the disclaimant predeceased the holder to whose death
the disclaimer relates.
                                                                    VT LEG #390168 v.1
No. 123  Page 8 of 15
2026
§ 4108. DISCLAIMER OF INTEREST BY TRUSTEE
   If a trustee disclaims an interest in property that otherwise would have
become trust property, the interest does not become trust property.
§ 4109. DISCLAIMER OF POWER OF APPOINTMENT OR OTHER
          POWER NOT HELD IN FIDUCIARY CAPACITY
   If a holder disclaims a power of appointment or other power not held in a
fiduciary capacity, the following rules apply:
      (1) If the holder has not exercised the power, the disclaimer takes effect
as of the time the instrument creating the power becomes irrevocable.
      (2) If the holder has exercised the power and the disclaimer is of a
power other than a presently exercisable general power of appointment, the
disclaimer takes effect immediately after the last exercise of the power.
      (3) The instrument creating the power is construed as if the power
expired when the disclaimer became effective.
§ 4110. DISCLAIMER BY APPOINTEE, OBJECT, OR TAKER IN
          DEFAULT OF EXERCISE OF POWER OF APPOINTMENT
   (a) A disclaimer of an interest in property by an appointee of a power of
appointment takes effect as of the time the instrument by which the holder
exercises the power becomes irrevocable.
   (b) A disclaimer of an interest in property by a permissible appointee or
taker in default of an exercise of a power of appointment takes effect as of the
time the instrument creating the power becomes irrevocable.
                                                                  VT LEG #390168 v.1
No. 123  Page 9 of 15
2026
§ 4111. DISCLAIMER OF POWER HELD IN FIDUCIARY CAPACITY
   (a) If a fiduciary disclaims a power held in a fiduciary capacity that has not
been exercised, the disclaimer takes effect as of the time the instrument
creating the power becomes irrevocable.
   (b) If a fiduciary disclaims a power held in a fiduciary capacity that has
been exercised, the disclaimer takes effect immediately after the last exercise
of the power.
   (c) A disclaimer under this section is effective as to another fiduciary if the
disclaimer so provides and the fiduciary disclaiming has the authority to bind
the estate, trust, or other person for whom the fiduciary is acting.
§ 4112. DELIVERY OR FILING
   (a) As used in this section, “beneficiary designation” means an instrument,
other than an instrument creating a trust, naming the beneficiary of:
      (1) an annuity or insurance policy;
      (2) an account with a designation for payment on death;
      (3) a security registered in beneficiary form;
      (4) a pension, profit-sharing, retirement, or other employment-related
benefit plan; or
      (5) any other nonprobate transfer at death, including an enhanced life
estate deed created pursuant to 27 V.S.A. chapter 6.
                                                                       VT LEG #390168 v.1
No. 123  Page 10 of 15
2026
     (b) Subject to subsections (c)–(m) of this section, delivery of a disclaimer
may be effected by personal delivery, first-class mail, or any other method
likely to result in its receipt.
     (c) In the case of an interest created under the law of intestate succession or
an interest created by will, other than an interest in a testamentary trust:
        (1) the disclaimer shall be delivered to the personal representative of the
decedent’s estate; or
        (2) if no personal representative is then serving, the disclaimer shall be
filed with a court having jurisdiction to appoint the personal representative.
     (d) In the case of an interest in a testamentary trust:
        (1) the disclaimer shall be delivered to the trustee then serving, or if no
trustee is then serving, to the personal representative of the decedent’s estate;
or
        (2) if no personal representative is then serving, the disclaimer shall be
filed with a court having jurisdiction to enforce the trust.
     (e) In the case of an interest in an inter vivos trust:
        (1) the disclaimer must be delivered to the trustee then serving;
        (2) if no trustee is then serving, the disclaimer shall be filed with a court
having jurisdiction to enforce the trust; or
        (3) if the disclaimer is made before the time the instrument creating the
trust becomes irrevocable, the disclaimer shall be delivered to the settlor of a
revocable trust or the transferor of the interest.
                                                                      VT LEG #390168 v.1
No. 123  Page 11 of 15
2026
   (f) In the case of an interest created by a beneficiary designation that is
disclaimed before the designation becomes irrevocable, the disclaimer shall be
delivered to the person making the beneficiary designation.
   (g) In the case of an interest in personal property created by a beneficiary
designation that is disclaimed after the designation becomes irrevocable, the
disclaimer shall be delivered to the person obligated to distribute the interest.
   (h) If real property or an interest in real property is disclaimed, a copy of
the disclaimer shall be recorded in the land records of the town in which the
property or interest disclaimed is located.
   (i) In the case of a disclaimer by a surviving holder of jointly held property,
the disclaimer shall be delivered to the person to whom the disclaimed interest
passes.
   (j) In the case of a disclaimer by a permissible appointee or taker in default
of exercise of a power of appointment at any time after the power was created:
      (1) the disclaimer shall be delivered to the holder of the power or to the
fiduciary acting under the instrument that created the power; or
      (2) if no fiduciary is then serving, the disclaimer shall be filed with a
court having authority to appoint the fiduciary.
   (k) In the case of a disclaimer by an appointee of a nonfiduciary power of
appointment:
                                                                    VT LEG #390168 v.1
No. 123  Page 12 of 15
2026
      (1) the disclaimer shall be delivered to the holder, the personal
representative of the holder’s estate or to the fiduciary under the instrument
that created the power; or
      (2) if no fiduciary is then serving, the disclaimer shall be filed with a
court having authority to appoint the fiduciary.
   (l) In the case of a disclaimer by a fiduciary of a power over a trust or
estate, the disclaimer shall be delivered as provided in subsection (c), (d), or
(e) of this section, as if the power disclaimed were an interest in property.
   (m) In the case of a disclaimer of a power by an agent, the disclaimer shall
be delivered to the principal or the principal’s representative.
§ 4113. WHEN DISCLAIMER BARRED OR LIMITED
   (a) A disclaimer is barred by a written waiver of the right to disclaim.
   (b) A disclaimer of an interest in property is barred if any of the following
events occur before the disclaimer becomes effective:
      (1) the disclaimant accepts the interest sought to be disclaimed;
      (2) the disclaimant voluntarily assigns, conveys, encumbers, pledges, or
transfers the interest sought to be disclaimed or contracts to do so; or
      (3) a judicial sale of the interest sought to be disclaimed occurs.
   (c) A disclaimer, in whole or part, of the future exercise of a power held in
a fiduciary capacity is not barred by its previous exercise.
                                                                    VT LEG #390168 v.1
No. 123  Page 13 of 15
2026
   (d) A disclaimer, in whole or part, of the future exercise of a power not
held in a fiduciary capacity is not barred by its previous exercise unless the
power is exercisable in favor of the disclaimant.
   (e) A disclaimer is barred or limited if so provided by law other than this
chapter.
   (f) A disclaimer of a power over property that is barred by this section is
ineffective. A disclaimer of an interest in property that is barred by this section
takes effect as a transfer of the interest disclaimed to the persons who would
have taken the interest under this chapter had the disclaimer not been barred.
§ 4114. TAX QUALIFIED DISCLAIMER
   Notwithstanding any other provision of this chapter, if as a result of a
disclaimer or transfer the disclaimed or transferred interest is treated pursuant
to the provisions of the Internal Revenue Code, as may be amended, or any
regulations promulgated under it, as never having been transferred to the
disclaimant, then the disclaimer or transfer is effective as a disclaimer under
this chapter.
§ 4115. RECORDING OF DISCLAIMER
   If an instrument transferring an interest in or power over property subject to
a disclaimer is required or permitted by law to be filed, recorded, or registered,
then the disclaimer may be so filed, recorded, or registered. Failure to file,
record, or register the disclaimer does not affect its validity as between the
                                                                   VT LEG #390168 v.1
No. 123  Page 14 of 15
2026
disclaimant and persons to whom the property interest or power passes by
reason of the disclaimer.
§ 4116. APPLICATION TO EXISTING RELATIONSHIPS
   Except as otherwise provided in section 4113 of this title, an interest in or
power over property existing on the effective date of this chapter as to which
the time for delivering or filing a disclaimer under law superseded by this
chapter has not expired may be disclaimed after the effective date of this
chapter.
§ 4117. RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND
           NATIONAL COMMERCE ACT
   This chapter modifies, limits, and supersedes the federal Electronic
Signatures in Global and National Commerce Act, 15 U.S.C. § 7001, et seq.,
but does not modify, limit, or supersede Section 101(c) of that act (15 U.S.C.
§ 7001(c)) or authorize electronic delivery of any of the notices described in
Section 103(b) of that act (15 U.S.C. § 7003(b)).
§ 4118. UNIFORMITY OF APPLICATION AND CONSTRUCTION
   In applying and construing this uniform act, consideration shall be given to
the need to promote uniformity of the law with respect to its subject matter
among states that enact it.
Sec. 2. REPEAL
   14 V.S.A. chapter 83 (Uniform Disclaimer of Property Interests Act) is
repealed.
                                                                   VT LEG #390168 v.1
No. 123  Page 15 of 15
2026
Sec. 3. EFFECTIVE DATE
  This act shall take effect on passage.
Date Governor signed bill: June 8, 2026
                                           VT LEG #390168 v.1