Can you refuse an inheritance?

[kenny]

If someone leaves you something and you don't want it, or the tax burden, can you refuse it?

And if you can refuse to accept it would the IRS or the state still try to tax you on something you refused to accept?

I realize this is an odd question, and the answer may vary by state but can any legal person answer for their state?

 

[monarch64]

http://www.legalmatch.com/law-library/article/disclaiming-a-gift-or-inheritance.html

Short answer=yes. Long answer=depends on what the inheritance entails. I'm sorry for yor loss at any rate, K.

ETA: I'm in life insurance and assist with general securities but without specifics can't really answer your question. Let me know if I can be of further assistance.

 

[Mrs Mitchell]

Kenny, I have no idea on the specifics of the rules where you live, but as our legal systems are similar, I'll tell you how it would generally work in the UK. If it isn't helpful just ignone.

You can refuse a specific bequest by letting the Executor of the deceased's estate know in writing that you decline to accept it. The item(s) will then go into the residue of the estate and will pass to the beneficiary of the residue. A Will should specify who is to receive the residue. Alternatively, it may go to a different person, if the Will specifies this. I would read the terms of the Will to see if there are any particular consequences. The rules on heritable property are slightly different and will depend on where you live.

You shouldn't be taxed on it, as you have to complete a tax return each year, right? Only amounts / items that you actually receive go on tax returns, you aren't taxed on hypothetical gains. The person who will pay the tax on the inheritance will be the person who actually does receive it. Unless things are more different than I thought in the US, of course.

 

[RaiKai]

It works much the same here in Canada as Mrs. Mitchell described (not surprising given the history of our legal system).

What a refusal triggers all depends on the testamentary instrument (will, codicils) itself (ie is there an alternate or is it now part of residue?) and the laws that apply.

For specific gifts I always ensure testators consider alterntates in case of refusal, predeceasing, etc.

However, taxation of estates is different here too. The estate must pay any taxes owing but inheritances are considered windfalls to the beneficiary and, like lotto winnings here, are not taxed to the beneficiary and are paid out after estate taxes.

 

[Rachel9]

Nobody can force to accept your inheritance. Waivers are common in real state. Disclaiming assets is the same as never having owned them but you IT must be in writing within 9 months to avoid taxes and irrevocable where I live.
You shluld never have benefited from proceeds ie a cousin who may offered a vaction another property or some $ for it. Now, that 'cousin' or next veneficiary in line will deal with your taxable girt.

* just my opinion