Inheritance is often welcome by the beneficiaries it was intended for. While the death of a loved one is never easy, inheriting property and assets can help enhance the lives of their family. However, not all inheritance is welcomed, and there are people who reject it. This blog will look at the legalities of inheritance rejections.
Reasons for Disclaiming Inheritance
There are several potential reasons why receiving a gift in a will may not be welcomed by the beneficiary. This could be because of the complex tax implications that are linked to it or simply because of a challenging relationship between the intended recipient and the deceased. The beneficiary may have had a significant change of circumstance since the will was made, or they may even feel that other beneficiaries are either more deserving or more in need of the gift than they are. Whatever the reason, it is more common than you would think to have a beneficiary refuse a gift from a will.
Methods of Refusing Inheritance
There are two ways to refuse inheritance, and these are variations and disclaimers. Both of which must be written and executed within 24 months of the death for tax purposes.
Variations
Variations are more commonly used as they cover most aspects of inheritance refusal. Examples of when the variations method is best used include:
- The inheritance is by the survivorship of a joint tenant.
- The beneficiary has already received benefits from the intended gift.
- If you only wish to disclaim some of the inheritance.
- Any other situation in which a disclaimer may not be appropriate.
Disclaimers
There are some situations in which a disclaimer may be more beneficial than a variation and are usually more complex than the above examples. Some tax and property issues must be disclaimed rather than varied. A disclaimer also does not make the person a settlor for income tax purposes, as the gift is seen as never being made to the intended party. This is not the case under variations. Contact a legal professional, such as Spanish probate Matters, for professional advice.
It is important to understand that these laws may vary from country to country, so it is always best to check local law requirements. Inheritance rejection is particularly common with Spanish probate.
For help with Spanish probate, contact Spanish Probate Matters on 0208 1502010.
