Disclaimer Trust
Learn about disclaimer trusts and how beneficiaries can refuse inherited assets to manage tax implications while maintaining estate planning flexibility.
How does a disclaimer trust work in estate planning?
A disclaimer trust allows a beneficiary to legally refuse inherited assets, which then pass to alternate beneficiaries or trusts as predetermined in the estate plan. This process must occur within nine months of the original owner's death and cannot be partial or conditional. The disclaimed assets transfer without creating gift tax consequences for the disclaiming beneficiary.
