As an estate lawyer, I often see cases where a person dies and leaves certain items of jewelry to a specific beneficiary. However, when time comes to distribute that gift, all-too-often the jewelry has gone missing.
As discussed in a previous blog entry, making a qualified disclaimer can be a useful tool in estate administration. In particular, it allows a beneficiary to renounce an interest in an inheritance or gift and thereby let it pass to another beneficiary. However, what does it take for the disclaimer to be "qualified" in the eyes of the IRS?
One definition of "disclaim" is when a person denies or renounces a claim to some thing or some right. In the context of estate administration, when a person disclaims, they are renouncing part or all of their right to receive under a Will, Trust or by operation of law.