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Re: How do inheritance disclaimers work?
Old 04-18-2007, 08:42 AM   #21
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Re: How do inheritance disclaimers work?

When my wife passed away I disclaimed some joint assets and moved them into her trust for her beneficiaries after I die. I had to write an official letter to her Trust within so many days of her death and then actually transfer the assets into the name of the new trust (name of trust changes after death). Her "new" trust then held, in the name of her new trust, the disclaimed assets from our combined estate that would have passed to me at her death.

I don't have a disclaimed asset clause in my own trust nor in my new wife's trust or in our wills. I can't imagine any of our kids disclaiming anything of value from us.

BTW, being a trustee is a pain at times. The trust generates some income from divideds and interest so I have to file estimated payments and also file a tax return for the trust; both Fed. and state. Tax rates on a trust are higher than on an "individual" which requires a fair amount of the income the trust generates to be used to pay the taxes. The trust has unique checking, savings and MM accounts which are used to capture the cash from account sweeps and then I move it from account to account as needed to pay legal and tax expenses incurred by the trust; which does add up to a few thousand $$$ a year. There are times when I would just like to disolve it now and give away all the assets to the heirs but the trust does not allow that unless I am willing to take on all the tax hit if I were to do that. Not yet.

Work? I don't have time to work....I'm retired.
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Re: How do inheritance disclaimers work?
Old 04-18-2007, 10:42 AM   #22
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Re: How do inheritance disclaimers work?

I lived in a rental house once, and had a clause in my lease to have the right to make a first offer if the house were to be placed on the market. The owner of the house died in a car accident, and left the house to his ex. She disclaimed the house (I assume that's what she did--she declined to take title).

I was told the estate was going to sell the house. IIRC, the same ex-wife was executor. I did a little research, found out the remaining loan balance, and made an offer of the outstanding balance plus $1500 for attorney fees. The offer was accepted. I assume the estate came out relatively neutral on the transaction.

I'm not sure why the ex didn't want the house, other than fear and lack of local knowledge. I think she must have questioned whether the house could be worth the outstanding balance. Since the house was in a desirable area of downtown Juneau, I just couldn't imagine it wouldn't be worth the balance on the loan. It had been hit by a mudslide a couple of years earlier, had an encroachment issue with a porch, and had had a carpenter ant infestation (which had been mitigated). I held the house for 6 years, and sold it for nearly double what I paid. By then I had resolved the encroachment. The hillside above had been stabilized by the city. Yearly $100 preventative spray kept any ants at bay. Worked for me
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Re: How do inheritance disclaimers work?
Old 04-19-2007, 10:11 PM   #23
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Re: How do inheritance disclaimers work?

Originally Posted by hogtied
In NY State when my grandmother died, my Dad disclaimed the trust money and it by passed him and went directly to the grandchildren. Disclaimer was not part of her will. My Dad initiated the disclaimer 2 years after her death when the trust paid out. I viewed the disclaimer much like a quit claim. It was a fairly easy and straight forward document. I remember that I had to sign off on the disclaimer that I approved prior to it being legally executed.
I was the successor trustee and executor of my father's estate - I remember his attorney said that if the heirs wanted to disclaim the inheritance, it had to be done with 9 months of his date of death. I am not sure if that is a California specific regulation
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