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((Short description|Legal concept))
((more citations needed|date=January 2017))

((Wills, trusts, estates))
In the [[law]] of [[inheritance]], [[will (law)|wills]] and [[Trust law|trust]]s, a '''disclaimer of interest''' (also called a '''renunciation''') is an attempt by a person to renounce their legal right to benefit from an inheritance (either under a will or through [[intestacy]]) or through a trust. "If a trustee disclaims an interest in property that otherwise would have become trust property, the interest does not become trust property."<ref>John H. Langbein, Thomas P. Gallanis, Lawrence W. Waggoner, ''Uniform Trust and Estate Statutes'' (2010), p. 201.</ref>

There are a number of reasons why a person might wish to avoid an inheritance, particularly if the proceeds would only go to their [[creditor]]s, or if it would drastically affect their [[income tax]] liabilities. Under the [[common law]], a person who disclaimed their interest would be treated as though they had died before the trust or will came into effect. This was a sensible option if the disclaiming party was an heir by descent, whose own children would then take in his place and without the imposition of a [[gift tax]].

The disclaimer must be in writing and submitted to the court overseeing the disposition of the estate within a legally specified time period, which is usually nine months after the death of the person from whom the disclaiming party stands to inherit, or twelve months after the creation of a trust by a living person.  An [[affidavit]] may be required in which the disclaiming party must swear that he has not received any [[consideration]] (i.e., compensation) for the disclaimer.  The disclaimer must also occur before the disclaiming party has enjoyed any benefits of the trust or inheritance. Many jurisdictions now have [[statute]]s that prohibit a disclaimer when the individual is [[insolvent]] or receiving certain public benefits due to low income.

A disclaimer of interest is irrevocable. It must be a complete, and not a partial disclaimer. Such a disclaimer can be made by a [[legal guardian]] on behalf of a person who lacks the [[capacity (law)|capacity]] to make the disclaimer themselves, but this usually requires the finding by a [[court]] that the disclaimer is in the ward's best interest.

== Disclaimers and deeds of variation: England and Wales ==

In England and Wales, a disclaimer is likewise irrevocable and covers the entire testamentary gift. It may be a unilateral act but should be communicated in writing to the persons administering the estate. It does not need to be registered with the court; the persons administering the estate are obliged to retain the communication as they may be required to provide an account to the court of their actions in the administration.

A similar effect to a disclaimer (including for [[Inheritance Tax (United Kingdom)|inheritance tax]] and [[capital gains tax]] purposes) can be achieved with a greater degree of flexibility through the use of a "deed of variation" (or "deed of family arrangement"). A person or persons due to inherit property may enter into such a deed with the [[personal representative]]s ([[executor]]s or administrators of an [[intestate]] estate) and redirect property due to the persons entering into the deed to whomsoever they wish. However, one cannot vary one's entitlement under a deed of variation. A deed of variation may be revocable or irrevocable. Disclaimers and deeds of variation may be overturned by the [[Bankruptcy in the United Kingdom|bankruptcy court]] and assets traced.

==Disclaimer of other interests==
In addition to the more typical disclaimer under wills, an individual may also be able to disclaim his interest as the beneficiary of a [[life insurance]] policy or employee benefit plans.  It may also apply to [[concurrent estate|concurrent interests]] in [[real property]] that automatically transfer after death by [[operation of law]] rather than by the rules of inheritance (such as [[Concurrent estate#Joint tenancy|joint tenancies]] or [[Concurrent estate#Tenancy by the entirety|tenancies by the entirety]]).

==References==
((reflist))

((Authority control))

[[Category:Wills and trusts]]
[[Category:Taxation in the United Kingdom]]

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