Daughter signed disclaimers of her interests in her mother's property in two different states. After the disclaimers were completed, she learned that her mother's GST exemption was only $650,000 and that the disclaimed property would be subject to the tax. She signed an affidavit indicating that she had disclaimed by mistake, and sought reformation of one or both disclaimers. State high court rules that reformation of the two disclaimers is permitted, and remands to the trial court for entry of an order authorizing the reformation.

As for the disclaimer of property in the same state the high court opines that the question is simple: the daughter (since deceased) would never have executed the disclaimer if "she had known that it did not achieve her intended purpose of minimizing Federal tax consequences for her children." As for the disclaimer of property in the other state, upon representations by counsel for the daughter's executor that reformation is permitted by the law of the sister state the lower court is directed to authorize that reformation as well.

Kaufman v. Richmond
Massachusetts Supreme Judicial Court, July 20, 2004

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