Disclaimers are a legal “no thank you.” Traditionally, disclaimers have been usedfor federal tax planning purposes, but disclaimers are also used for other reasons.For instance, the named beneficiary does not want to inherit from the deceased,wants someone else to benefit from the inheritance, or does not want a particular piece of property. Thus, disclaimers are used.
From you? No thank you.
A beneficiary may used a disclaimer if there has been an estrangement and hedoesn’t want to benefit from the deceased.
For me? Thanks, but Billy could better benefit from your gift.
A beneficiary may disclaim if he doesn’t need the assets and would prefer they goelsewhere. However, the beneficiary disclaiming cannot direct where the assets gonext. They will pass as provided in the deceased’s estate plan and as if theintended beneficiary had pre-deceased.In other words, if Maxine’s revocable living trust gives $100,000 to her daughter,Ellen, and Ellen doesn’t need or want the gift, she can disclaim. Maxine’s trustwill provide where the assets go next. Typically, the trust would provide that if Ellen pre-deceases Maxine, the gift would go to Ellen’s children equally. In thiscase, Ellen children’s will inherit the gift that Ellen disclaimed.
Yuck. I don’t want that.
A beneficiary may disclaim because he doesn’t want a particular piece of property.This is most commonly used if a piece of real property is tainted by environmental