ABA Family Legal Guide

Estate Planning

Death and Taxes

What if I receive a bequest and don't want it?

Because of taxes or other reasons, those named as beneficiaries in a will or a trust document may not want the property left to them. For example, if you go bankrupt and then your father dies, your creditors may be entitled to first shot at the property he left to you. You might want to give up this property so that it will go, for example, to your sister instead of to your creditors. Or you may receive property that is subject to liens and mortgages greater than its market value, so it is a burden you would rather not have.

Most states permit beneficiaries to disclaim (that is, refuse) an inheritance or benefit. The Internal Revenue Code describes how a beneficiary may disclaim an interest in an estate for estate tax purposes. See a knowledgeable tax lawyer if you intend to disclaim any gift.