What if you don’t want to accept an inheritance?

05 Feb What If You Don’t Want to Accept an Inheritance?

Not every inheritance is a welcome one. There are many reasons why someone might refuse a bequest. A large amount of money could become a burden on the taxpayer or disqualify you from government benefits. They may feel that someone else would value it more and so want to give their inheritance to another person. No matter what the situation is, it’s vital to remember that disclaiming an inheritance

will be a final decision. It’s important to seek professional advice before taking this step. A lawyer who specializes in estate planning can help you weigh costs and benefits and give you advice on what to do next. The legal process can be different from state-to-state as well–here’s how to decline an inheritance in Arizona.How to Decline an InheritanceEXAMPLE:

Doug’s uncle left him a historic house that needs a lot of repair and maintenance. Doug is not interested in the house. He doesn’t want to spend the time and money on repairing the property, and is sure that it won’t sell as-is. He’s worried that it will become a drain on his own income, so he decides to disclaim the inheritance and let it pass to the next relative in line.

Here’s what Doug has to do to legally disclaim the inheritance:

Write a statement that explicitly states his refusal to accept the assets left to him in his uncle’s will. The disclaimer should state that the decision is irrevocable and cannot be changed. It must be signed and delivered by Doug to the executor or the probate court within nine months after his uncle’s passing. It cannot be passed to him directly or indirectly. Doug can’t change his mind after filing the paperwork. Disclaiming an inheritance is final–once the paperwork is filed, Doug can’t change his mind.

Can I Sign Over My Inheritance to Someone Else?

1. EXAMPLE:
2. Because her mother didn’t write a will, the court named Kristina as the beneficiary of her mother’s estate. Kristina’s mother left behind a large legacy, and she is sure that if her mom had written a testament, she would have included her granddaughter Natalie as a beneficiary. Can she sign the inheritance to Natalie instead of Kristina?
3. If Kristina refuses to accept the inheritance, the court will distribute it according to intestate succession. Natalie will not receive anything unless she is the next in line. Kristina can accept the inheritance and give it directly to Natalie. Natalie would have to pay gift taxes and other financial consequences. She can then

set up a living trust

with the funds and name Natalie as beneficiary. She can then

set up a living trust

with the funds and name Natalie as beneficiary.

Do You Need to Meet with an Estate Planning Lawyer?If you’re thinking about declining an inheritance, you don’t have to make the decision on your own. Phelps LaClair’s legal team is available to answer your questions and provide you with the expert advice needed to make the right decisions for the future of your family. Our decades of experience and expertise in estate planning make us the most trusted law firm in the Phoenix Valley. Schedule a consultation with

for sound advice and an estate plan that is rock-solid. Photo by

Strange Happenings

on Unsplash used with permission under the Creative Commons license for commercial use 1/30/25.

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