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ARTICLE · 03 JUNE 2024

Important Considerations When Receiving An Inheritance - When Should You Reject A Gift?

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As discussed in Part I, there are several implications, tax and otherwise, that beneficiaries should consider when receiving an inheritance...

United KingdomTax
Melody Mirbod
Melody Mirbod
Elizabeth A. Bawden
Elizabeth A. Bawden
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This article is part two of a three-part series on inheriting assets, and focuses on the important considerations, benefits, and implications of making a qualified disclaimer.

As discussed in Part I, there are several implications, tax and otherwise, that beneficiaries should consider when receiving an inheritance. In the vast majority of cases, beneficiaries are inclined to accept an inheritance; however, in some situations it makes sense for a beneficiary to reject it. When done properly to qualify for favorable tax treatment and other benefits, a gift is rejected using a "qualified disclaimer."

PART 2: DISCLAIMERS

What is a qualified disclaimer?

A "qualified disclaimer" is an irrevocable and absolute refusal to accept a gift. There are strict formalities required by the Internal Revenue Code for a qualified disclaimer, including all of the following:

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