In West Palm Beach an heir or beneficiary can disclaim or waive their right to an inheritance. Do you know why they would do that? Probably to allow it to go to their children and avoid taxes; or maybe they want to avoid creditors. Did you know this avenue is not available if you areinsolvent in Florida? Know the rules of disclaimer of inheritance inside and out with this quick guide.
Disclaimers Generally
- Florida has adopted the Uniform Disclaimer of Property Interests Act that several other states have as well.
- A beneficiary or heir may disclaim an interest, which results in the interest passing as though the disclaimant had died immediately before the interest was created.
- How can you make sure the disclaimer is valid?
- It must be in writing, identified as a disclaimer, it must describe the interest, be signed and witnesses (and acknowledged) and lastly it has to be delivered.
- Delivered to who?
- If you want to disclaim real property in West Palm Beach you will have to record it.
- For Federal tax purposes you will have to disclaim within nine months but you can disclaim at any point for the sake of Florida’s probate process, you will just be on the hook for the taxes.
- A disclaimer is valid against creditors of the disclaimant because it is as if they never owned the property.
- Watch out for one big exception though- federal tax liens.
- Remember the property passes as if you died so if the gift is subject to an anti-lapse statute it will go to your heirs (not who you leave it for in your will) and it will not be your choice who else it goes to no matter what.
- If the anti lapse statute in Florida does not apply then you are going to see it pass into the residuary unless there was a back up beneficiary.
Joint Tenancies
- Did you know that in West Palm Beach you have a right to disclaim an interest that passes by joint right of survivorship?
When is the Right to Disclaim Barred?
- You can waive your right to disclaim in writing but this is rare to say the least.
- You can also be barred if you accept the property or benefit from its use.
- If you voluntarily assign the property, use it as collateral or otherwise encumber it you cannot disclaim it.
- Also if it the property is sold by judicial process you are barred.
- Hands down the most important thing to know about bars to disclaimers is that in Florida a disclaimer is void if you are insolvent.
- This is because they do not want insolvent people simply passing it to their children to avoid creditors.