renounce your inheritance

How to Renounce Your Inheritance in New York Under EPTL §2-1.11

Renouncing an inheritance might seem counterintuitive at first, but there are various reasons someone might choose to do so. In New York, the legal framework for disclaiming an inheritance is outlined in the Estates, Powers, and Trusts Law (EPTL) §2-1.11. Here’s what you need to know if you’re considering renouncing your share of an estate.

Why Renounce Your Inheritance?

Common reasons for renouncing an inheritance include:

  1. Tax Planning: To avoid estate or income tax consequences.
  2. Debt Avoidance: If the inherited asset is encumbered with liabilities, renouncing may prevent you from assuming those obligations.
  3. Equalizing Distribution: To allow other heirs to benefit from the estate or to fulfill a family agreement.
  4. Government Benefits: To maintain eligibility for Medicaid or other means-tested government programs. (Though please note that renunciation for Medicaid planning purposes counts as a transfer of assets). 

Under New York law, renouncing an inheritance requires strict adherence to the statutory requirements:

  1. Timing:
    • The renunciation must be made within nine months of the decedent’s date of death.
    • If the renounced asset is a future interest (e.g., a trust remainder), the renunciation must occur within nine months of when the interest becomes irrevocable.
    • Failing to meet these deadlines will result in the inability to disclaim the inheritance unless judicial approval is sought for a late renunciation (see below).
  2. Form of the Renunciation:
    • The renunciation must be in writing.
    • It must be signed and acknowledged before a notary public.
  3. Filing and Delivery:
    • The written renunciation must be filed with the Surrogate’s Court handling the estate.
    • A copy must also be delivered to the executor or administrator of the estate.
  4. Irrevocability:
    • Once a renunciation is filed, it cannot be revoked. Make sure the decision aligns with your financial and personal goals.

Seeking Judicial Approval for Late Renunciation

If you miss the nine-month deadline, you may petition the Surrogate’s Court for judicial approval to file a late renunciation. The court will consider the following factors:

  1. Reason for the Delay:
    • Valid reasons might include lack of knowledge of the inheritance, medical incapacity, or other extenuating circumstances.
  2. Absence of Prejudice:
    • The court will assess whether allowing the late renunciation would unfairly prejudice other heirs or creditors of the estate.
  3. Good Faith:
    • You must demonstrate that the renunciation is being made in good faith and not to defraud creditors or others.

If approved, the court will issue an order permitting the late filing, which must then be recorded with the Surrogate’s Court.

Key Considerations Before You Renounce Your Inheritance

  • Effect of Renunciation: When you renounce an inheritance, your share passes as though you predeceased the decedent. It will typically pass to the next eligible heir unless the will or trust provides otherwise.
  • Tax Implications: While renouncing an inheritance can help avoid certain taxes, it’s essential to consult with a tax professional to understand the full implications.
  • Impact on Creditors: A properly executed renunciation prevents your creditors from claiming the renounced asset. However, this does not absolve you of any existing debts.

Steps to Renounce

  1. Consult Professionals:
    • Engage an experienced estate attorney to ensure compliance with EPTL §2-1.11.
    • Discuss the tax consequences with a financial advisor or CPA.
  2. Draft the Renunciation Document:
    • Your attorney will prepare the document in accordance with legal requirements.
  3. Sign and Acknowledge the Document:
    • Sign the renunciation before a notary public.
  4. File and Serve the Renunciation:
    • File the original renunciation with the Surrogate’s Court.
    • Serve a copy on the executor or administrator of the estate.
  5. Retain Copies:
    • Keep copies of the renunciation and proof of filing for your records.

Sample Affidavit To Renounce Your Inheritance

Below is an example of a renunciation affidavit that meets the requirements of EPTL §2-1.11:

SURROGATE’S COURT OF THE STATE OF NEW YORK

COUNTY OF [COUNTY NAME]

In the Matter of the Estate of [DECEDENT’S NAME], Deceased

RENUNCIATION OF INHERITANCE

I, [YOUR FULL NAME], residing at [YOUR ADDRESS], being duly sworn, depose and say:

1. I am a beneficiary of the estate of [DECEDENT’S NAME], who passed away on [DATE OF DEATH].

2. Pursuant to EPTL §2-1.11, I hereby renounce and disclaim any and all right, title, and interest that I have or may have in the estate of [DECEDENT’S NAME], including but not limited to the following assets: [DESCRIPTION OF ASSETS, IF APPLICABLE].

3. I understand that this renunciation is irrevocable and that I shall have no legal or beneficial interest in the disclaimed property.

4. I further state that this renunciation is made voluntarily and without any undue influence, and I have consulted legal counsel regarding this decision.

Dated: [DATE]

[YOUR SIGNATURE]

[YOUR PRINTED NAME]

Acknowledgment:

STATE OF NEW YORK  )

                    ) ss.:

COUNTY OF [COUNTY] )

On the [DATE] day of [MONTH], [YEAR], before me, the undersigned, a Notary Public in and for said state, personally appeared [YOUR NAME], personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that they executed the same in their capacity, and that by their signature on the instrument, the individual executed the instrument.

_____________________________

Notary Public

Conclusion

Renouncing an inheritance in New York is a serious decision that requires careful consideration and strict adherence to EPTL §2-1.11. By consulting with legal and financial professionals, you can ensure the renunciation aligns with your personal and financial objectives. If you’re thinking about disclaiming your inheritance or need guidance on filing a late renunciation, contact our experienced estate planning team at www.rklawny.com for personalized guidance.


For more information, please contact NYC Probate Litigation, Guardianship, Probate, and Estate Planning attorney Regina Kiperman:

Phone: 917-261-4514
Fax: 929-556-2089
Email: rkiperman@rklawny.com

Or visit her at:
40 Wall Street
Suite 2508
New York, NY 10005

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This page is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this site you understand that there is no attorney client relationship between you and the lawyer. The post should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. ATTORNEY ADVERTISING.

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