S.F. 2222 Section 1. Section 633E.4, Code 2009, is amended to read as 1 follows: 2 633E.4 Tax qualified disclaimer. 3 Notwithstanding Except as provided in sections 633E.13 4 and 633E.15, notwithstanding any other provision of this 5 chapter, any disclaimer or transfer that meets the requirements 6 of section 2518 of the Internal Revenue Code, as now or 7 hereafter amended, or any successor statute thereto, and the 8 regulations promulgated thereunder, for the purpose of being a 9 tax qualified disclaimer with the effect that the disclaimed 10 or transferred interest is treated as never having been 11 transferred to the disclaimant is effective as a disclaimer 12 under this chapter. For purposes of this section, “Internal 13 Revenue Code” means the same as defined in section 422.3. 14 Sec. 2. Section 633E.7, subsection 1, Code 2009, is amended 15 by striking the subsection and inserting in lieu thereof the 16 following: 17 1. Upon the death of a holder of jointly held property, 18 either of the following may occur: 19 a. If, during the deceased holder’s lifetime, the deceased 20 holder could have unilaterally regained a portion of the 21 property attributable to the deceased holder’s contribution 22 without the consent of any other holder, a surviving holder 23 may disclaim, in whole or in part, a fractional share of that 24 portion of the property attributable to the deceased holder’s 25 contributions determined by dividing the number one by the 26 number of joint holders alive immediately after the death of 27 the holder to whose death the disclaimer relates. 28 b. For all other jointly held property, a surviving holder 29 may disclaim, in whole or in part, a fraction of the whole of 30 the property the numerator of which is one and the denominator 31 of which is the product of the number of joint holders alive 32 immediately before the death of the holder to whose death the 33 disclaimer relates multiplied by the number of joint holders 34 alive immediately after the death of the holder to whose death 35 -1- LSB 5584SV (2) 83 rh/nh 1/ 3

S.F. 2222 the disclaimer relates. 1 Sec. 3. Section 633E.7, Code 2009, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 4. A noncitizen spouse who is a surviving 4 joint tenant of real property interests created after July 13, 5 1988, can disclaim the spouse’s interest to the full extent 6 permitted under section 633E.4. 7 Sec. 4. Section 633E.13, subsection 5, Code 2009, is amended 8 to read as follows: 9 5. A disclaimer is barred or limited if so provided by law 10 other than this chapter , except as provided in subsection 7 . 11 Sec. 5. Section 633E.13, Code 2009, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 7. A disclaimer may be made at any time 14 unless otherwise barred and any other law that would bar a 15 disclaimer due to the passage of time shall not apply under 16 this chapter. 17 Sec. 6. Section 633E.14, subsection 2, Code 2009, is amended 18 to read as follows: 19 2. This chapter does not limit any right of a person to 20 waive, release, disclaim, or renounce disclaim an interest in 21 or power over property under a law statute other than this 22 chapter. 23 EXPLANATION 24 This bill amends Code section 633E.4, relating to a tax 25 qualified disclaimer or transfer of a property interest, to 26 allow two exceptions (Code sections 633E.13 and 633E.15) to 27 the requirement that a disclaimer or transfer of a property 28 interest that is valid under section 2518 of the Internal 29 Revenue Code is valid for all purposes under Code chapter 30 633E. Code section 633E.13 identifies circumstances under 31 which disclaimers are barred or limited and Code section 32 633E.15 prohibits a disclaimer from being used to avoid medical 33 assistance obligations pursuant to Code chapter 249A. 34 The bill amends Code section 633E.7 relating to disclaimers 35 -2- LSB 5584SV (2) 83 rh/nh 2/ 3

S.F. 2222 of rights of survivorship in jointly held property to provide 1 that upon the death of a holder of jointly held property, 2 either of the following may occur: 3 1. If, during the deceased holder’s lifetime, the deceased 4 holder could have unilaterally regained a portion of the 5 property without the consent of any other holder, a surviving 6 holder may disclaim, in whole or in part, a fractional share 7 of that portion of the property attributable to the deceased 8 holder’s contributions determined by dividing the number one by 9 the number of joint holders alive immediately after the death 10 of the holder to whose death the disclaimer relates. 11 2. For all other jointly held property, a surviving holder 12 may disclaim, in whole or in part, a fraction of the whole of 13 the property the numerator of which is one and the denominator 14 of which is the product of the number of joint holders alive 15 immediately before the death of the holder to whose death the 16 disclaimer relates multiplied by the number of joint holders 17 alive immediately after the death of the holder to whose death 18 the disclaimer relates. 19 In addition, Code section 633E.7 is amended to allow a 20 noncitizen, surviving spouse to make a tax-qualified disclaimer 21 of property interests under section 2518 of the Internal 22 Revenue Code. 23 The bill amends Code section 633E.13 to provide that there 24 is no time limit in regard to a disclaimer of an interest in 25 property. 26 The bill amends Code section 633E.14 to prohibit common 27 law disclaimers as an alternative to disclaimers of property 28 interests under Code chapter 633E. 29 -3- LSB 5584SV (2) 83 rh/nh 3/ 3