Texas allows a beneficiary to disclaim all or part of an inheritance. Why would a person want to disclaim an inheritance? Well, there are a number of reasons. There may be some beneficiaries who are in poor financial shape and the other beneficiaries don’t need the property and have a desire to help out the one who is having financial problems. The property may be run down and not worth the hassle. The estate may be very large, e.g. millions of dollars and the beneficiary does not want the tax problems associated with very large estates.
A disclaimer has to be in writing, notarized, properly delivered and filed. It can’t designate who gets the property. The effect of the disclaimer is the disclaiming beneficiary is treated as if he predeceased the testator and the property will then go to whoever the will designates to receive the property in that event.
Pearls of wisdom: If you want or need to disclaim an inheritance, see your attorney so that you can properly, effectively and timely disclaim it.
Situation:
A beneficiary of a trust properly disclaims for tax reasons (GST,1954 Tax Code). The part of the estate she disclaims passes to her four children. The trust referred to is very specific
as to what happens when, etc. The trust, created by the will of her husband, is to terminate upon her death. One of her children dies about 7 months before she does. This child, a son,
dies at the age of 52 and his two children a specifically mentioned in the husbands will and trust. He wants to make sure his son’s separate property goes to his children.
The other three children ignore the disclaimer, no tax is paid, hide the grandfather’s trust,
and leave the two grandchildren with a small parcel of land.
Will you comment?
You have contacted me by email at http://www.TheProbate.Net. I’ll respond privately.