Here is something you don’t run across every day. Should you refuse an inheritance?
Surprisingly enough, there may be times when you do want to disclaim (refuse) an inheritance.
Here are 2 of them.
If You Are In Debt.
One situation in which you might want to refuse an inheritance is if you are in debt.
Why refuse money if you are in debt?
Because it is pretty certain that anything you get will go straight to your creditors. So you may want to allow the next beneficiary in line (the contingent beneficiary) to inherit.
To Avoid Paying Taxes.
Another reason you might want to disclaim an inheritance is to avoid paying taxes. Inheritances usually result in gift tax liability.
If you do not need the inheritance, you might consider disclaiming it so that the money can pass on to the next generation. By disclaiming your inheritance any gift tax will be taxed in the lower bracket of the next generation family member.
Disclaiming an inheritance is not something that is ordinarily done, which is why it is important to discuss your situation with experienced trusts and estates counsel.
Work with a Trusts and Estates Attorney.
If you are considering disclaiming your inheritance, talk to us. We will sit down with you and go over all your concerns and answer all your questions. We offer FREE consultations. We have offices in Sedona, Arizona but we serve Verde Valley and all of Arizona. Simply call us at 928-282-1483 or connect with us on Facebook, or contact us here.