Showing posts from April 2, 2016

Saturday Finances—To Inherit or Not to Inherit

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…