Disclaimer of Benefits

[Guest TroyRiley]

I would like to get some opinions on a survivor's ability to disclaim monthly survivor benefits after he has already accepted a couple of months of benefits.

Our state statute says, "a disclaimer of an interest in property is barred if the disclaimant accepts the interest sought to be disclaimed." This would seem to say that a survivor who accepts a monthly benefit may not change his mind and disclaim future monthly benefits. However, I am wondering if the future monthly benefits should be treated as separate interests in property. Such a reading would seem to further the intent of the statute, which is to not force property on someone if he doesn't want to accept it.

Thanks in advance.

[Guest halka]

You need to go back to the statute. You are likely reading about a "qualified disclaimer" - one in which the property distribution proceeds as though the named beneficiary predeceased the decedeased participant. That results in the disclaimant avoiding any ownership or tax consequences w/ respect to the property. States probably would have any laws about a 'non-qualified' disclaimer - refusing to accept something. So, unless there is some controlling language in the annuity contract, the real question is probably going to relate to income/gift tax consequences.