05 Feb What If You Don’t Want to Accept an Inheritance?

Not every inheritance is a welcome one. There are many reasons someone might want to refuse a bequest—a large amount could become a tax burden or disqualify them from government benefits. Or perhaps they feel that another person would appreciate it more, so they want to sign their inheritance over to someone else. 

But no matter the situation, it’s important to note that disclaiming an inheritance is a final decision. Once you take that step, there’s no going back, so it’s wise to get some professional advice before you proceed. An estate planning lawyer can help you weigh the costs and benefits, and advise you on the next steps to take. The legal process can be different from state-to-state as well—here’s how to decline an inheritance in Arizona.

How to Decline an Inheritance

EXAMPLE:

Doug’s uncle left him a historic house that needs a lot of repair and maintenance. Doug has no interest in it. He doesn’t have the time or resources to fix it up for sale, and he’s sure that the property won’t sell in its current condition. He’s worried that it will become a drain on his own income, so he decides to disclaim the inheritance and let it pass to the next relative in line.

Here’s what Doug has to do to legally disclaim the inheritance:

1. Write a statement that explicitly states his refusal to accept the assets left to him in his uncle’s will. 
2. The disclaimer must state that this decision is irrevocable, and can’t be changed. 
3. It must be signed by Doug and delivered to the probate court or the executor of the estate within nine months of his uncle’s death.

By taking these steps, Doug gives up any rights to the property in question. It can’t pass to him in any way, either directly or indirectly. He can’t share in the profits if someone else sells it, either. Disclaiming an inheritance is final—once the paperwork is filed, Doug can’t change his mind.

Can I Sign Over My Inheritance to Someone Else?

EXAMPLE:

Because her mother didn’t write a will, the court named Kristina as the beneficiary of her mother’s estate. Her mother left a sizable legacy behind, and Kristina is certain that if her mother had written a will, she would have wanted to include her granddaughter, Natalie, as a beneficiary. Is there any way she can sign the inheritance over to Natalie instead?

If Kristina disclaims the inheritance, it will be distributed by the court according to the laws of intestate succession. Unless Natalie is the next relative in line, she won’t get anything. Kristina could simply accept the inheritance, and then give it to Natalie herself. However, there would be gift taxes to pay, as well as other financial ramifications for Natalie. 

The best option in this scenario is for Kristina to accept the inheritance. She can then set up a living trust with the funds and name Natalie as beneficiary.

Do You Need to Meet with an Estate Planning Lawyer?

If you’re thinking about declining an inheritance, you don’t have to make the decision on your own. The legal team at Phelps LaClair is here to answer all of your questions and supply the expert advice you need to make the best choices for your family’s future. Estate planning is all we do, and our decades of experience make us the most trusted firm in the Phoenix Valley. For sound advice and a rock-solid estate plan, schedule a consultation today. 

Photo by Strange Happenings on Unsplash used with permission under the Creative Commons license for commercial use 1/30/25.