Effect On Creditors

• Jurisdiction: Maryland

11. [§ 10.100] Effect on Creditors

"Creditors of the disclaimant have no interest in the property or interest disclaimed, whether their claims are based on contract, tort, tax obligations, or otherwise." Prior EST. & TRUSTS § 9-204(f). The same result flows from relating the disclaimer back to the date of decedent's death. EST. & TRUSTS § 9-203.

COMMENT RE FEDERAL TAX LIEN ON DISCLAIMED PROPERTY: There was a split of authority on whether a taxpayer who has outstanding tax obligations may disclaim an interest in an estate. A valid qualified disclaimer was held to prevent the IRS from asserting a lien on the disclaimed property on account of the disclaimant's tax liability. See Mapes v. United States, 15 F.3d 138 (9th Cir. 1994); Leggett v. United States, 120 F.3d 592 (5th Cir. 1997). The Eighth Circuit reached a contrary conclusion in Drye Family 1995 Trust v. United States, 152 F.3d 892 (8th Cir...