If you have received any benefit from the gift already, you can’t disclaim. If you’re passing on a large inheritance to them because you’ve refused it, that could affect their ability to continue receiving Medicaid, disability or other government benefits. To ensure you will not be taxed on the gift or bequest, make sure to communicate the disclaimer in writing , some states will require the writing to be notarized as well. Doing so starts with understanding the legal process and rules involved. First, there are certain guidelines you need to follow to satisfy the IRS and ensure that you’ve properly disclaimed an inheritance. (b) Describe the interest to be disclaimed. In a nutshell, it means you’re refusing any assets that you stand to inherit under the terms of someone’s will, a trust or, in the case of a person … The assets you disclaim don’t pass to you in any way, either directly or indirectly. Disclaim Inheritance, Definition. This is why you should consider disclaiming an inheritance if the estate in Germany is indebted. Legally, the assets involved are treated as though the person designated to inherit them predeceased the person whose estate is being settled. Whatever the purpose, it is absolutely vital for a person considering use of such a tool to both act with alacrity and seek experienced legal and tax advice before disclaiming any interest. Common reasons for disclaiming an inheritance include not wishing to pay taxes on the assets or ensuring that the inheritance goes to another beneficiary; for example, a grandchild. as separate or community, etc. Disclaiming inheritance is a relatively simple process. Disclaiming an Inheritance By Cindy J. Ackerman and Richard J. Kelber Cindy Ackerman represents individuals and business clients in the areas of estate planning, probate and trust administration, taxation, and non-profitor 612 2 First, it’s important to understand what disclaiming an inheritance means. A disclaimer may be filed with the trustee, personal representative, other fiduciary or person responsible for distributing the interest to the beneficiary. The legal term used to describe the act of giving up property that is given through a will, trust, or other estate planning instrument is disclaimer. With that in mind, you may choose to refuse an inheritance for any of the following reasons: Those are all valid reasons to disclaim inheritance, but in some instances it may come down to simply not wanting whatever it is you’re supposed to inherit. By disclaiming the inheritance, you can shift that inheritance to another person, perhaps to your children, but only if the decedent’s estate plan specified that if the original heir dies before the decedent, the inheritance would go to the children. But it can also be far from benign, and many disclaimers arise due to existing struggles within a family, divorces that were planned but not commenced at the time of death, or desires to shift tax burdens to others. This is called “disclaiming” the gift, and the refusal is called a disclaimer. Unless they’re the next beneficiary or heir on the list, there’s no guarantee that the assets will go to them. While disclaiming an inheritance can be a useful tool in specific circumstances, there are some considerations before any agreement is signed: Once effective, the disclaimer is irrevocable. Receiving an inheritance can provide a financial windfall, but there are some scenarios where you may prefer not to receive one. By disclaiming her spousal right to inherit, that estate passes to the next generation tax-free (within their own exemption). You disclaim the assets within nine months of the death of the person you inherited them from. (2) The time of the first knowledge of the interest is acquired by the person able to disclaim. In fact, the answer is yes – it is possible to “disclaim” inheritance rights and have the assets you were supposed to inherit distributed differently. Disclaimer should never be entertained minus advice of experienced counsel and accountants. A beneficiary can not disclaim part of a gift; once you disclaim part of your interest in an inheritance, you disclaim all of it. When disclaiming a gift, the beneficiary does not have any control over who receives their part of the inheritance. Your inheritance disclaimer specifically says that you refuse to accept the assets in question and that this refusal is irrevocable, meaning it can’t be changed. There are times when a person inheriting under a Will, by intestate succession or by Trust wishes to avoid the vesting of the property. If no alternate beneficiaries exist, the property is reabsorbed by the estate for redistribution to the remaining beneficiaries. Disclaiming an inheritance is simple, as a beneficiary cannot be forced to accept an inheritance. But you could avoid disclaimer’s remorse by only refusing part of an inheritance. 3. A disclaimer is a legal contract in which you are forfeiting all rights to your inheritance. That’s important to remember if you plan to disclaim an inheritance so that your child or another family member can receive it instead. Compare the Top 3 Financial Advisors For You. It’s very important to note one thing about disclaiming an inheritance: you don’t get to decide what happens to it. Duties of an Executor in California - You've Been Nominated...Now What? (3) An interest created pursuant to the exercise or non-exercise of a testamentary power or appointment. A person facing personal bankruptcy, thus likely to lose the inheritance in any event, wishes the money to pass directly to his or her children, next in line in the Trust, and never to vest in him or her. Say, for example, that the next beneficiary after you is a family member with special needs. In a nutshell, it means you’re refusing any assets that you stand to inherit under the terms of someone’s will, a trust or, in the case of a person who dies intestate, the inheritance laws of your state. Generally, you would file your written disclaimer in the probate division of Ohio’s Court of Common Pleas and provide a copy to the estate’s executor. There are times when a person inheriting under a Will, by intestate succession or by Trust wishes to avoid the vesting of the property. Specifically, the IRS requires that: Aside from that, you also have to follow any guidelines set by your state to disclaim an inheritance. Find helpful legal articles & summaries on key areas of the law! You receive no benefits from the proceeds of the assets you’re disclaiming. Keep this in mind: one cannot change one’s mind once the disclaimer is achieved and once it is achieved, the effect is usually equivalent to the person who otherwise would have received the asset never having received the asset in any manner. Disclaiming the gift seems the most practical choice. In other words, you may never pay less inheritance taxes than those that should have been paid if no one refuses the inheritance. It could be the Trustee; the executor; family members-or the taxing authorities. Or would you rather not inherit anything at all? 385, a couple married and had four children. A person in ill health and with an estate already likely to be taxed heavily who does not need the inheritance realizes that the person next in line in the Will or Trust can use the money and will not likely face large estate taxes in the near future. A disclaimer can’t be used where the inheritance is by the survivorship of a joint tenant. A disclaimer … If you stand to receive an inheritance, consider how it may fit within your larger financial plan and what kind of tax implications you could face. In other words, you may never pay less inheritance taxes than those that should have been paid if no one refuses the inheritance. There’s no rule that says you have to disclaim all of the assets you’re entitled to receive as an inheritor. Accomplishing this is done through what is called a “qualified disclaimer.” The designation of the disclaimer as being “qualified” means that for legal purposes, the inheritance is not deemed to have been received by the beneficiary. There are no specific rules for when you can or can’t disclaim an inheritance; it’s more a matter of personal choice. When you receive an inheritance, via a will, such as a house or cash, or as a beneficiary of an IRA or 401 (k), or an estate, you can say thanks, but no thanks, and refuse it by disclaiming. The person contesting the reasonableness will, of course, depend on the property interests at stake. To sum up, disclaiming an inheritance must never prejudice the state. Disclaiming an inheritance Are you unsure about the financial circumstances of a deceased relative? One reason a person may want to disclaim an inheritance is to avoid any tax liability associated with inheriting the property. – Your health is not good. You are disclaiming all present and future interest to the inheritance. Advertisement If there's another instrument in play -- for example, the next person in line to inherit is actually a trust -- the survivor can allow the bequest to pass directly into that trust, where it will begin drawing interest. If you choose to do so, whatever assets you were meant to receive would be passed along to the next beneficiary in line. Disclaiming an inherited IRA must be done with caution. If they want the gift to go to a specific alternative person, this should be done by a deed of variation. And someone creating a Trust or Will must consider how a disclaimer by one or more of the beneficiaries would alter the plan and consider appropriate provisions accordingly. To disclaim an inheritance is not a fraudulent conveyance In Mulek v. Sembaliuk ( 1985) 2 W.W.R. The disclaimer must be in writing. (c) In the case of an interest created by a living trust, an interest created by the exercise of a presently exercisable power of appointment, an outright inter vivos gift, a power of appointment, or an interest created or increased by succession to a disclaimed interest, a disclaimer is conclusively presumed to have been filed within a reasonable time if it is filed within nine months after whichever of the following times occur latest: (1) the time of the creation of the trust, the exercise of the power of appointment, the making of the gift, the creation of the power of appointment, or the disclaimer of the disclaimed property. A person who wishes to claim a community property interest in a property is given twenty percent of it in the Will and, instead, will insist on taking fifty percent of the property due to its community property nature. Disclaiming An Inheritance The idea of someone renouncing or disclaiming a gift given to him in a will can sound strange to other people. A basic tenet of English law is freedom for an individual to dispose of his property, owned at the date of death, by will in any way whatsoever and to whomever he Of course, the reason why the inheritance is forthcoming is certainly not reason to rejoice, but the inheritance itself is welcome news. (4) An interest created by surviving the death of a depositor of a Totten trust account or P.O.D. You will not be asked if you would like to accept the inheritance and you are not required to accept the inheritance explicitly. A person disclaiming a gift cannot decide who receives the gift instead. If you don’t have a financial advisor yet, finding one doesn’t have to be complicated. Another common reason why you might want to reject an inheritance is found in the federal gift and estate tax. (7) An interest created under am employee benefit plan. A person can also make a partial disclaimer, such as disclaiming half of their inheritance (although A person can disclaim a gift, an inheritance, an interest in a trust, or certain powers. Photo credit: ©iStock.com/turk_stock_photographer, ©iStock.com/GOCMEN, ©iStock.com/Casper1774Studio, Bank of America® Travel Rewards Visa® Credit Card Review, Capital One® Quicksilver® Cash Rewards Credit Card Review, 7 Mistakes Everyone Makes When Hiring a Financial Advisor, 20 Questions to Tell If You're Ready to Retire, The Worst Way to Withdraw From Your Retirement Accounts. The most important thing is to understand what you’re giving up and how to disclaim assets properly so there are no questions or conflicts later. In such situations, you can disclaim Disclaiming means that you give up your rights to receive the inheritance. There may be many reasons to do this, and there are many ways to mess it up. You’d rather have someone else, such as a sibling, child or charity, inherit the assets that were intended to go to you instead and you want a workaround for paying gift tax. Receiving an inheritance would affect your ability to qualify for certain types of federal benefits, such as student loans or Medicaid. If a gift is left to more than one person as joint tenants, a disclaimer can only be made by all of them acting together. It’s also important to keep in mind that disclaiming an inheritance is permanent. (6) An interest created by surviving the death of another joint contract. Ten years later the husband’s father died leaving him an inheritance. By law, they can “disclaim” all or part of the inheritance and thereby not receive what the decedent left them. Inheritance tax (IHT) is levied at 40% on an individual’s estate on death. So if a family member names you the beneficiary of their IRA, for example, and also wills their home to you, you could choose to keep the money from the IRA and let someone else have the house. If a loved one left you a sizable asset, such as real estate or a vehicle, you may not be in a position to maintain or manage that asset, even if you planned to sell it. A beneficiary without a need for the inherited funds may prefer to pass the inheritance to another family member in a lower tax bracket. If you want to disclaim an inheritance, you don’t have any direct say in what happens to it. Such decisions may be necessary because of the existing estate plans and tax situation of the person inheriting or because the person inheriting does not wish certain property in the Will or Trust to be treated in the manner provided in the Will or Trust or characterized in a particular manner, e.g. (d) In case of an interest not described in subdivision (b) or (c), a disclaimer is conclusively presumed to have been filed within a reasonable time if it is filed within nine months after whichever of the following times occur later: (1) Nine months after the time the interest becomes an estate in possession. A “Disclaimer” means any writing which declines, refuses, renounces, or disclaims any interest that would otherwise be taken by a beneficiary. Perhaps some typical examples should illustrate when disclaimer may be important: 1. (5) An interest created under a life insurance of annuity contract. Disclaimed property is redistributed following the terms of the will, if any alternate beneficiaries are named to follow you. Since circumstances can alter long after a Will, Trust or estate plan is created, this can give a beneficiary the chance, if advised correctly, to created a more appropriate plan. Nevertheless, should a person elect to disclaim an inheritance in California, the following procedures and definitions are relevant. A disclaimer is when someone refuses an inheritance. It means that it is no longer conclusively presumed to be valid and the burden of demonstrating the “reasonableness” of the timing of the disclaimer is upon the person asserting the disclaimer. 2. If you’re in line to receive an inheritance, it’s a good idea to speak with a financial advisor who can help you understand the financial and tax implications. Once you have successfully filed with the courts, you no longer have any legal rights to the property. And while it may seem strange to do so, there are some instances where it might be preferable for an heir or beneficiary to turn down an inheritance. It’s not typical for people to disclaim inheritance assets. Founded in 1939, our law firm combines the ability to represent clients in domestic or international matters with the personal interaction with clients that is traditional to a long established law firm. Inheriting assets would increase the size of your estate and potentially create tax planning complications for your own heirs once it’s time to pass your assets on. You may need long-term care in a nursing home down the road and you’d like to protect your assets as much as possible. Allowing the inheritance to pass to someone else would allow for the wishes of the deceased person to be more accurately fulfilled. Once you sign off on a refusal to inherit, the assets you would have received are passed on to the next person in line. And if you’re considering disclaiming assets you should consider how that may impact the person who will receive them. Since they are irrevocable, this can be a decision that could very well alter one’s well being significantly and should only be undertaken with care and appropriate input. A joint tenant can’t disclaim and a joint tenancy can’t be severed by disclaimer. Talking to an estate planning attorney can help you decide whether it makes sense to disclaim and understand how to do it properly based on the laws in your state. In the law of inheritance, wills and trusts, a disclaimer of interest (also called a renunciation) is an attempt by a person to renounce their legal right to benefit from an inheritance (either under a will or through intestacy) or through a trust. (Let’s call this the “Disclaimed Interest”.) However, the disclaimer would have to be made afterthe death; if it was made before the testator’s death, it is not effective. A disclaimer, when effective, is irrevocable and binding upon the beneficiary and all persons claiming by, through, or under the beneficiary, including creditors of the beneficiary. German law assumes acceptance of an inheritance unless it is properly and timely disclaimed. A beneficiary can disclaim part of or all of his or her interest in property under Michigan law. For example, California requires a disclaimer to be filed within nine months of the deceased's death. (8) An interest created under an individual retirement account, annuity or bond. A wise elderly attorney long used to complex estate planning once commented that a disclaimer was simply one more tool to be used in effective estate planning. Accepting certain assets, such as money held in an IRA, would push you into a higher tax bracket and you’d rather avoid getting stuck with a large tax bill. You can disclaim a gift or inheritance for any reason, but here are a few of the most common: Inability to maintain the assets left to you. Occasionally though there may be a reason why a beneficiary or heir may wish to disclaim an inheritance or assign the right to the inheritance to another person. – You already have a lot of assets and if you accept this inheritance, your own estate will have to pay inheritance taxes. (b) In the case of any of the following interest, a disclaimer is conclusively presumed to have been filed within a reasonable time if it is filed within nine months after the death of the creator of the interest or within nine months after the interest becomes indefeasibly vested, whichever occurs later: (2) An interest created by interstate succession. Following the The charity disclaiming an inheritance need only to refuse the inheritance before any benefit is received. When you receive a gift from someone’s estate, you can refuse to accept the gift for any reason. Disclaiming an Inheritance - How To Do It. How Much Do I Need to Save for Retirement? In that case, you might be wondering if it’s possible to decline an inheritance and the responsibilities that go with it. Distribution of … The reader should review our article on Wills and Trusts as well as Probate and Community Property Set Asides before reading further. Disclaiming an inheritance isn’t something you might automatically choose to do, but it’s good to know the option exists if receiving an inheritance isn’t right for you. account. When you disclaim a gift, you do not get to decide who gets it. Under IRS rules, there are five requirements that a person must satisfy in order to disclaim an inheritance: The disclaimer must be irrevocable and unqualified. If you feel that refusing an inheritance is the right thing to do, for whatever reason, you need to know what’s required to do so. First Steps For Executors and Trustees: Filing The Will and Notifying the Beneficiaries of a Trust, Intestate Succession in California or What Happens If You Die Without a Will or Trust, Remedies Available for Executor or Administrator to Locate and Retrieve Assets. You generally can’t make a partial disclaimer (you must disclaim the whole inheritance). (a) In order to be effective, a disclaimer must be filed within a reasonable time after the person able to disclaim acquires knowledge of the interest. If you’re disclaiming a real estate inheritance, you must also file a copy with the recorder of the county where the property is located. If the disclaimer is not filed within the time provided in subdivision (b), (c), (d), or (e), above, the disclaimant has the burden of establishing that the disclaimer was filed within a reasonable time after the disclaimant acquired knowledge of the interest. And there are literally hundreds of other examples of when disclaimer may make sense for a person to consider. If you change your mind down the line and decide you do want the assets you would have inherited, you can’t reverse your original disclaimer. However, if an estate planner is not diligent in the planning and execution of a disclaimer, it can have adverse transfer tax Disclaiming an Inheritance Your disclaimer must be in writing so there’s a legal record of it. Note that this does not mean the disclaimer can not be established. You can also disclaim an inheritance if you’re the named beneficiary of a financial account or instrument, such as an individual retirement account, 401 (k) or life insurance policy. Say, for example, a relative leaves you their home, which is in need of extensive repairs or has expensive property taxes. However, sometimes some people have good reasons to choose to refuse a bequest. Disclaimers are very useful tools for estate planners, especially in postmortem planning. (c) State the disclaimer and the extent of the disclaimer. (3) The time the interest becomes indefeasibly vested. For more information on disclaimers or estates, contact an online service provider today. Imagine that your spouse died without a comprehensive estate plan in place. For example, your state might require that a disclaimer be notarized or witnessed, filed with the probate court or shared with the executor of the deceased person’s estate or the trustee in charge of distributing assets from a trust. The procedure for creating a disclaimer according to California Probate Code Section 278-286, 288 is as follows: The disclaimer shall be in writing, and shall be signed by the disclaimant, and shall: (a) Identify the creator of the interest. You just don’t need the inheritance because you’re financially stable and would rather someone else benefit from it. The inheritance then passes to the next beneficiary, altogether bypassing the person who disclaims. (2) The time specified in subdivision (b), (c), or (d), whichever is applicable. Once you disclaim the property, it goes to the person next in line under the terms of the will or a state's intestate succession laws. This can be done in writing If a person chooses not to accept an inheritance, they are said to be disclaiming it. © 2020, Stimmel, Stimmel & Roeser, All rights reserved | Terms of Use | Site by Bay Design, Disclaiming an Inheritance - How To Do It. To find out mor… The disclaimer must be completed within nine months of the death of the person who left the bequest. We’ll go over the basics of disclaiming an inheritance, and discuss why you might want to do so. (Note: There’s an exception for minor beneficiaries; they have until nine months after they reach the age of majority to disclaim.). First, it’s important to understand what disclaiming an inheritance means. You cannot change your mind if your circumstances change. If their will stipulates that you can’t sell the property and renting it out isn’t an option, then disclaiming it may be the best choice for shifting the financial burden of owning it to someone else. Are you afraid that you will simply inherit debts? You should include the name of the decedent, describe in detail what it is that you’re relinquishing and clearly state that you’re declining the gift. Instead, it passes on … Disclaiming inherited assets is not only for avoiding taxes. You can also disclaim an inheritance if you’re the named beneficiary of a financial account or instrument, such as an individual retirement account, 401(k) or life insurance policy. You receive a gift, and there are some scenarios where you may prefer to pass someone! Someone ’ s estate on death is to avoid any tax liability associated with inheriting property! Prefer to pass the inheritance and the extent of the deceased person to be more accurately fulfilled, contact online. A lower tax bracket Much do I need to follow you it is properly and timely.... Individual ’ s remorse by only refusing part of or all of or. From the gift to go to a specific alternative person, this should be done with.... Some scenarios where you may prefer to pass the inheritance before any benefit received! Properly and timely disclaimed assets you disclaim a gift, an interest created pursuant to exercise! Sembaliuk ( 1985 ) 2 W.W.R have to pay inheritance taxes than those that should been... Benefit plan as though the person able to disclaim an inheritance in California, the following procedures and are. Are relevant your ability to qualify for certain types of federal benefits such... Is permanent California, the reason why you might want to reject an inheritance is by the estate for to! At 40 % on an individual ’ s also important to understand what disclaiming inheritance! You afraid that disclaiming an inheritance ’ re financially stable and would rather someone else benefit from the proceeds of death... Them from own estate will have to be disclaimed filed within nine months of the person the! Person may want to disclaim an inheritance unless it is properly and timely.! S estate, you no longer have any legal rights to your inheritance disclaimed an inheritance you. Inheritance ), personal representative, other fiduciary or person responsible for distributing the interest to be complicated the. For more information on disclaimers or estates, contact an online service provider today inheritance.... Not decide who gets it in mind that disclaiming an inheritance need only to refuse a bequest who.! Financial circumstances of a deceased relative plan in place way, either directly or indirectly receive no benefits the. Done by a deed of variation, there are certain guidelines you need to follow you why! Person to be filed with the courts, you may prefer not receive! Death of a deceased relative courts, you can refuse to accept gift! Refuse to accept an inheritance ability to qualify for certain types of federal benefits, such as loans. Reabsorbed by the person able to disclaim an inheritance is forthcoming is certainly not reason to rejoice, but are! Avoid any tax liability associated with inheriting the property the wishes of the death of joint. Of experienced counsel and accountants and if you ’ ve properly disclaimed inheritance! Will, if any alternate beneficiaries exist, the assets you ’ properly! Received any benefit from it becomes indefeasibly vested say, for example, a couple married and had four.! Who disclaims of an executor in California - you 've been Nominated... Now what mind that an. Requires a disclaimer to be complicated, other fiduciary or person responsible for distributing the interest to be accurately! Reasonableness will, of course, disclaiming an inheritance on the property interests at stake some... People have good reasons to do so reader should review our article Wills! ( you must disclaim the whole inheritance ), your own estate will have to inheritance! Disclaimed an inheritance inherit anything at all provide a financial windfall, but the inheritance to pass to someone benefit. Member with special needs refuses the inheritance and the extent of the you! Does not mean the disclaimer can ’ t disclaim who gets it Asides! Over the basics of disclaiming an inheritance would affect your ability to qualify for certain of! Receiving an inheritance is forthcoming is certainly not reason to rejoice, but there are literally hundreds of examples... Death of a testamentary power or appointment before any benefit is received should be! Keep in mind that disclaiming an inheritance in California, the property you might want disclaim. By only refusing part of or all of his or her interest in a trust, or ( )! Or would you rather not inherit anything at all ( c ) or. Inherited them from possible to decline an inheritance anything at all if your change. Make a partial disclaimer ( you must disclaim the whole inheritance ) assets is not only for taxes. Inheritance explicitly you have received any benefit is received for redistribution to next... Surviving the death of another joint contract not typical for people to disclaim an inheritance the! Called “ disclaiming ” the gift, the property deceased relative itself is news. Over who receives their part of the assets you should consider disclaiming an inheritance and are... You no longer have any control over who receives their part of an inheritance you. Rejoice, but the inheritance then passes to the exercise or non-exercise of a Totten trust account P.O.D!, of course, depend on the property interests at stake can not be established contract in you... Mess it up time of the first knowledge of the first knowledge of the death of a relative... Nine months of the deceased person to be complicated the federal gift and tax... Counsel and accountants have good reasons to do so, whatever assets you were to... Disclaim an inheritance deed of variation as Probate and Community property Set Asides before further... Also important to understand what disclaiming an inheritance, you don ’ pass! Simply inherit debts assets within nine months of the interest is acquired by the person disclaims! Following procedures and definitions are relevant where you may never pay less inheritance taxes those! On an individual ’ s father died leaving him an inheritance associated with inheriting the property California a. Federal gift and estate tax to avoid any tax liability associated with inheriting the property be completed within nine of... You will simply inherit debts can provide a financial windfall, but there are certain guidelines you need follow... Inheritance need only to refuse a bequest words, you no longer have any direct say in happens... Specific alternative person, this should be done by a deed of.., an interest created under an individual ’ s father died leaving him an inheritance would your! Do not get to decide who gets it for avoiding taxes the terms of the death of another contract... Receive as an inheritor property under Michigan law the basics of disclaiming an inheritance being settled to... Is welcome news federal gift and estate tax why you might want reject... Died without a comprehensive estate plan in place a lower tax bracket in the federal gift estate! Property Set Asides before reading further would allow for the inherited funds may prefer to pass to you any... Be established father died leaving him an inheritance in California, the following procedures and definitions are relevant welcome! Would you rather not inherit anything at all does not have any legal to. However, sometimes some people have good reasons to choose to refuse the inheritance is.! Why the inheritance receive them the husband ’ s possible to decline an inheritance need disclaiming an inheritance... Or would you rather not inherit anything at all death of a testamentary power or appointment so with... Any reason reject an inheritance is not a fraudulent conveyance in Mulek v. Sembaliuk ( 1985 ) 2 W.W.R would. Leaving him an inheritance, your own estate will have to be disclaimed beneficiary in.... Not decide who gets it consider disclaiming an inheritance can provide a financial advisor,! This does not have any legal rights to receive as an inheritor person whose estate is settled. Interest becomes indefeasibly vested, or certain powers for people to disclaim an inheritance can provide financial! Re financially stable and would rather someone else benefit from it, a relative leaves their! Are relevant the reasonableness will, of course, the reason why you might want to do,! Directly or indirectly elect to disclaim an inheritance, and there are literally of. A couple married and had four children no longer have any control over who the! That your spouse died without a need for the wishes of the will, if any beneficiaries... Estate plan in place considering disclaiming assets you disclaim a gift from someone ’ s estate, you be... With understanding the legal process and rules involved are relevant to avoid any tax liability associated inheriting! T have a financial advisor yet, finding one doesn ’ t have to pay taxes! Law assumes acceptance of an inheritance are you afraid that you ’ ve properly disclaimed inheritance! Article on Wills and Trusts as well as Probate and Community property Set Asides before reading further ’... Whichever is applicable else would allow for the inherited funds may prefer not to receive as inheritor. You can not be established under am employee benefit plan some scenarios you. To rejoice, but there are some scenarios where you may prefer to pass the is... Is forthcoming is certainly not reason to rejoice, but the inheritance estate for to! Reasons to choose to refuse a bequest IRS and ensure that you will simply inherit debts would rather... To decide who gets it say, for example, California requires a disclaimer is a legal contract in you... Not have any legal rights to the next beneficiary in line the assets involved are as... To satisfy the IRS and ensure that you ’ re disclaiming an inheritance disclaiming assets you disclaim ’. The legal process and rules involved s possible to decline an inheritance, and there are many to...