Renunciation

There are times when a person may be included in a trust to receive a particular piece of property that either carries great value or which will impact their tax status significantly. As a result, this individual may wish to give up their rights in the trust as a recipient of an estate’s property, which means that they would not take possession of this particular property. Known as either renunciation or a disclaimer of interest, this measure can be used to refuse property for whatever reason.

Contact the Houston wills and trusts lawyers of Garg & Associates, P.C., at 281-362-2865 today.

Why Renounce Property?

It seems like an odd concept. Someone leaves a relative or friend with a particular amount of property or money after they die, and the recipient, in turn, gives up their right to collect that property. However, considering the complex financial situations people can find themselves in, renunciation can be a wise choice under some circumstances. The following reasons are commonly cited:

• That property would only go to pay creditors
• That property would increase one’s tax requirements
• The beneficiary would lose government assistance
• The beneficiary feels unfit to manage or control the property

Some of these reasons are not legally legitimate in certain jurisdictions. In order to renounce a property, a person must go before the court and present the proper procedural paperwork in order to complete this act. These disclaimers cannot be later reconsidered, and remove a person’s rights to that property entirely.

Contact Us

If you have questions regarding how an estate’s property could potentially affect beneficiaries from a legal standpoint, contact the Houston wills and trusts attorneys of Garg & Associates, P.C., by calling 281-362-2865.