Understanding Why a Qualified Disclaimer Can Be Helpful For New Jersey Estate and Death Tax Claims

 By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, PC., a NJ Estate and Probate Administration Attorney

 

I use Disclaimers a lot, they are very beneficial.   Most people do not know what a Disclaimer is or how it works.   A Disclaimer is essentially a legal document in which an individual refuses to accept a bequest, inheritance or gift from a person who wishes to leave property to him or her.   Your reaction may be, “why would someone want to do that?”.   The answer is simple; maybe the surviving beneficiary has plenty of their own assets and the tax consequences of having more assets would be disastrous.   Other circumstances involve a lack of interest in receiving the asset or concerns that the nature and quality of the asset does not justify the risk associated with obtaining legal ownership.   For example, if a decedent gifts polluted property to a beneficiary and the beneficiary accepts title, then the beneficiary is obligated for the clean-up of that property under New Jersey and some Federal laws.  Therefore, the beneficiary will not want to become the owner and therefore, must refuse the gift.  Thus, the use of a Disclaimer is important.

 

Rather than, citing to you portions of the Federal Regulations on Qualified Disclaimers, I am linking you to a Cornell Law Journal so that you can read the entirety of the Federal Regulations.   I know that it is boring but again, it gives you a broad based background on the subject matter and allows you to better evaluate its possible use.

 

In this blog, I have given you some of the general criteria for a valid Disclaimer.  Read it, if you have any questions, feel free to contact me and we can meet to discuss its potential use for you.

To discuss your NJ estate planning and estate probate matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com.  Please ask us about our video conferencing consultations if you are unable to come to our office.

http://www.lawschool.cornell.edu/