How to Renounce or Disclaim an Inheritance in Georgia

Georgia law provides an option for renunciation or disclaimer of an inheritance by the intended recipient. The applicable statute establishes a required process as well as specific legal rules that apply when an inheritance is declined. If you consider renouncing an inheritance, you should discuss your situation with a knowledgeable estate planning attorney before making a final determination, to ensure that you make a fully informed decision regarding the implications of a disclaimer. Your attorney also helps you follow the process required by Georgia law, if you ultimately decide to renounce the inheritance.

Reasons for Renunciation or Disclaimer of an Inheritance

While most people would not even consider renouncing an inheritance, there are circumstances when it might make sense to do so. Some of the common reasons for renunciation or disclaimer include:

Adverse Tax Effects

In some circumstances, receiving property through an inheritance may increase the overall value of the recipient’s own estate or the recipient’s taxable income, which could ultimately increase the potential tax liability of the estate or of the recipient. If you think that an inheritance may have this effect on your estate or income, you should consult an estate planning attorney to make an objective determination regarding the tax consequences of the potential inheritance before you make a decision to renounce the inheritance.

Implications for Government Benefits

A person who receives or wishes to apply for needs-based government benefits, such as Medicaid and Supplemental Security Income (SSI), may be concerned that an inheritance could affect their eligibility for benefits because of the asset increase that results from the inheritance. It is essential to talk with a Medicaid planning attorney before making this type of disclaimer. In Georgia, renunciation of an inheritance is considered a transfer of assets for Medicaid purposes. However, in some situations, it may be possible for a benefits recipient to avoid the negative implications of an inheritance by taking specific steps with assistance from a Medicaid planning attorney.

Unwanted Assets or Responsibilities

Some inherited assets, particularly real estate, can have burdens and obligations that are undesirable, such as on-going fees, property taxes, or maintenance responsibilities. In this situation, disclaiming the inheritance is one way to avoid undertaking unpleasant or undesirable obligations.

Financial or Family Reasons

An intended recipient who is financially secure may wish to decline an inheritance so that another relative or a charity can benefit from the financial gain. It is important to remember that an individual who declines an inheritance does not determine what happens to the intended gift. That determination is based on the donor’s expressed wishes in their estate or under intestate succession laws. In this situation, consulting with an estate planning attorney is the best way to make a fully informed decision about renouncing an inheritance.

Requirements for a Valid Renunciation

The Georgia Code § 53-1-20 governs renunciations and disclaimers. A written and signed document that fully and accurately describes the property and the renunciation is required to make a valid disclaimer. The document must be transmitted to the correct person at a legally appropriate time (specified by the statute) and must be properly filed, according to the nature of the property and proceedings. If a person has accepted the property or any of its benefits, a renunciation is not allowed. In addition, after a renunciation or disclaimer is validly made, it cannot be reversed, revoked, or cancelled.

If you consider renouncing or disclaiming an inheritance for any reason, you should consult with an estate planning attorney, who can explain the full implications of that action under Georgia law and make certain that you follow the required procedure for making the renunciation or disclaimer. Getting help from a lawyer helps you to pay careful attention to all the Georgia legal requirements in order to ensure a valid disclaimer and avoid potential disputes with the IRS, creditors, or other interested parties. Reaching out for professional guidance on renouncing an inheritance must be done in a timely manner to make sure the necessary deadlines are met.

Talk with an Experienced Georgia Estate Planning Attorney

If you are considering renouncing or disclaiming an inheritance for any reason, the knowledgeable attorneys at Asset Protection & Elder Law of Georgia are here to help explain the legal requirements and implications under Georgia law. We serve clients throughout the communities northwest of Atlanta, including in Bartow County, Cobb County, Cherokee County, Gordon County, Floyd County, and Paulding County. To schedule a consultation, call us at (770) 382-0984 or contact us through our online form.