Although IRAs and inherited IRAs have been used by discerning taxpayers as a viable estate planning tool, the use of disclaiming an inherited IRA for such purposes has been rare.
The income attributable to the RMD cannot be disclaimed, thus, the IRS argued, despite receiving the RMD for the year of the decedent's death, disclaiming the remaining IRA balance, in whole or in part, is appropriately treated as a "qualified disclaimer," excluding any income attributable to the RMD.
Under disclaimer provisions, some possible situational disclaiming applications include disclaiming less than one's entire interest, disclaiming qualified plan benefits and the disclaiming of property and powers by fiduciaries.
It's important for advisors to be aware of the situational applications of disclaiming.
Advisors should thoroughly consider the advantages and effects of disclaiming in the estate planning process and provide for the ability to disclaim in pertinent documents and situations.
Question--What is the problem, if any, in disclaiming life insurance proceeds?
If the disclaiming spouse is the beneficiary under the will, a further renunciation would be necessary, because the insurance proceeds would fall into the probate estate as a result of the first disclaimer.
Under the terms of the Derivative Action Agreement, Vaso Active and its named officers and directors agree, while disclaiming
any liability, to institute or maintain previously instituted corporate governance changes including, among others:
The Supreme Court addressed the issue of whether any property rights had vested in the disclaiming beneficiary.
A disclaiming heir or devisee has ultimate control as to how the property is to be distributed.
Also, the acceptance of any consideration in return for disclaiming is acceptance of the benefits of the entire interest disclaimed.
However, the accountants also pointed out that the legatees must not be promised anything in return for disclaiming.
The IRS has stated that the nine-month period for disclaiming
an interest in jointly held property runs from the date that "title is created.
2518 allows a would-be beneficiary to disclaim a gift or bequest provided that - disclaimer is in writing; - the transferor (or his legal representative) receives the written disclaimer no later than (1) nine months after the date of the transfer that created the interest the would-be beneficiary is disclaiming, or (2) if later, the day on which the would-be beneficiary turns 21; - the would-be beneficiary has not received the interest or any of its benefits; and - as a result of the disclaimer, the interest passes to a person other than the would-be beneficiary without any direction on the would-be beneficiary's part (Sec.
2518 created two major roadblocks to disclaiming an interest in a joint tenancy.