Saturday, 28 February 2015

If there are several beneficiaries(2 of which are legally minors) that want to disclaim real estae that was left to them in a trust, how doe...

Question

If there are several beneficiaries(2 of which are legally minors) that want to disclaim real estae that was left to them in a trust, how does the executor do this? Can it be done?



Answer

Yes, a donee may refuse to accept a gift. That disclaimer should be stated in

writing and given to the executor. A minor cannot disclaim a gift; the gift must be

placed in trust for them; when they reach legal age, they may disclaim the gift.

It the estate is being administered in probate, a disclaimer may be filed in

the court.



Answer

This sounds like a situation which can benefit from the executor consulting with an attorney concerning all the facts and circumstances of the fact pattern: estate vs. trust, minors, effect of disclaimer, issues to be explored for intended vs. unintended consequences. There is a time requirement for disclaimers to be effective in federal estate tax cases of nine months.



Answer

Good answers from Mr. Martin and Ms. Prihoda.



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