Navigating the Unexpected

What can be done about a beneficiary who does not want to accept an inheritance?

One solution is to have the beneficiary formally refuse to accept the inherited property. If the beneficiary has not accepted any benefit from the property and signs a “qualified disclaimer” within nine months after the decedent’s death, then the inheritance skips the person making the disclaimer and passes to the next eligible beneficiary. Qualified disclaimers are commonly used in estate, gift, and generation-skipping transfer tax planning.

Simple enough, but what are the options when a beneficiary is unresponsive or can’t be found? In that case, the person administering the decedent’s estate or trust can petition the probate court for permission to liquidate the property and deposit the funds with the county treasurer for safekeeping.

If the beneficiary entitled to the funds later decides to accept them or is found, the beneficiary can petition the probate court for an order requiring that the funds be released to the beneficiary. If the beneficiary fails to claim the funds within three years after they are deposited with the county treasurer, then the funds can be released to those who would have inherited them had the beneficiary predeceased the decedent.

If you have questions about disclaiming an inheritance or managing an unresponsive beneficiary, reach out to our knowledgeable attorneys at 248.477.6300.