Disclaimers:

•    Same as “renunciation”
•    Refusal to accept inheritance – Why?
–    Don’t want it (rare)
–    Creditor problem
–    If refuse to inherit, heir doesn’t have to pay creditor
–    Through “relation back doctrine”, the property goes back to the estate and then passes to the children (to next heirs in line) as if disclaimant never touched it (or as if disclaimant predeceased decedant)
–    This means no gift tax and creditors can’t touch it
–    Tax avoidance – this is the big reason
–    Make sure you get the timing correct under Federal tax law as well as state law
–    Texas statute §37A:
•    Anyone can disclaim
•    Can disclaim almost anything
•    Notarized writing required (most states don’t require notarization
•    Within 9 months of date of death or from vesting (e.g. when contingent remainder vests)
–    Federal tax law requires 9 months from when “interest in trust created” (§2518) or 9 months after you turn 21
–    “Created” = when X set up trust in which you have an interest
•    Irrevocable – §37Ad
•    Partial disclaimer is ok – §37Ae, f, but only if not accepted (§37g)
•    Law of intestate succession applies to all disclaimed property unless will states otherwise