Having a conversation with your AEGIS Financial advisor will provide you with straight- forward answers and a clear picture on how to move forward …
When one of our clients passed away earlier this year, he left all his investment and IRA accounts to one Beneficiary. While grateful for the windfall, the Beneficiary asked if there was a way, she could refuse some of the money and instead have it pass directly to her adult children. Although inconceivable to some people, there is a legal process that one can employ if they choose to refuse an inheritance. This process is referred to as Disclaiming an Inheritance. Once the decision was made to disclaim, the team at AEGIS Financial contacted the Estate attorney to help ensure that all the proper steps were taken and the proper documents were completed.
There are no specific rules for when you can or cannot disclaim an inheritance; it is more a matter of personal choice. 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 are supposed to inherit.
Say, for example, a relative leaves you their home, which needs extensive repairs or has back taxes due. If the will stipulates that you cannot sell the property and renting it out is not an option, then disclaiming it may be the best choice for shifting the financial burden of owning it to someone else.
Any primary or contingent IRA beneficiary can disclaim all or a portion of his or her beneficial interest in a deceased participant’s IRA but only if certain conditions are met. The disclaimer must be a “qualified disclaimer” under Internal Revenue Code section 2518 and is an irrevocable election.
To qualify under section 2518 of the Code, the disclaimer must:
Every situation is different. Just know that the clock is ticking, taking money from any account impacts your ability to disclaim, and it is one of those “forever decisions”. We pride ourselves on always giving advice which benefits you, the client, first and putting your interests before ours. If there is someone you care about who needs unbiased client-first advice, please feel free to refer them to the advisors at AEGIS Financial.
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