Emma receives a large devise of property from her mother. Emma does not need or want the property. However, Emma’s daughter is heavily indebted with student loans. If Emma disclaims her devise under the federal and state disclaimer statutes, the property will pass as if Emma had predeceased her mother, so therefore the estate will pass to Emma’s daughter without the tax penalties associated with also giving the devise as a gift.
Disclaimer
If an heir receives a devise through intestate succession that she does not want to keep, she may disclaim the devise. When an heir disclaims a devise it will pass through intestate succession as if the heir who was supposed to receive the devise predeceased the decedent.
Definition from Nolo’s Plain-English Law Dictionary
1) A contractual provision in which one party renounces or refuses a right or a responsibility. 2) A formal statement by a patent or trademark owner that it does not claim certain intellectual property rights. 3) An irrevocable refusal to accept property that has been left by will, trust, or other method, sometimes used in estate planning to reduce overall taxes paid by a family. (See also: intellectual property)
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm
