Why exactly would anyone want to refuse their inheritance? Well, believe it or not, refusing, or disclaiming, an inheritance may actually be more beneficial to you than accepting it.
If the circumstances are right, a disclaimer could equal substantial federal estate tax savings. Let's say that your parents happen to leave you a large amount of money or property, however you actually don't need them. You can file what is called a qualified disclaimer and those assets could possibly be passed directly to your children if they are contingent beneficiaries. And then the disclaimed amount will not count against your estate tax or lifetime gift tax exemptions.
However, keep in mind that the decedent must name these secondary beneficiaries in the will should you disclaim all or part of the inheritance. You will not be able to direct where any of the disclaimed portions go.
It is always wise to consult with an estate attorney if you are thinking of disclaiming an inheritance.
*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.