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Showing posts from April 2, 2016

Saturday Finances—To Inherit or Not to Inherit

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I'm not an expert.  I'm just paying attention. 





Disinherit v. Disclaim

There are several valid reasons to refuse an inheritance.

1.  To avoid adverse tax consequences.

2.  Cost of clean-up.

3.  Landlord /tenant pre-arrangement.  Someone is given permission to continue living on property that you've inherited.

4.  Avoid family drama, i.e. multiple heirs, shirt-tail relatives, step-relatives, etc.

5.  Dog of a property.  Hard to sell; contamination or environmental concerns (e.g. mold, rodent infestation, toxic spill, etc.); condemnable structures; undesirable location, etc.

6.  Interference with government aid eligibility, e.g. Medicaid benefits, Supplemental Security Income, Veterans Affairs Aid, etc.

7.  Someone else deserves it more.

8.  The cost of receiving a gift outweighs the benefits.

9.  Avoid creditor claims.

10.  Undesirable vacation property or unwanted timeshare.

Refusing a bequest is a post-mortem legal action initiated by the recipient.  The renunciation of a gift or bequ…