Why Renounce Your Inheritance

Written By Kevin McKernan

Renouncing an inheritance might seem unusual, but there are valid reasons for doing so. 

Reasons for Renouncing an Inheritance: 

  • Tax Planning: Avoid potential estate or income tax implications. 

  • Debt Avoidance: Prevent inheriting encumbered assets. 

  • Family Agreements: Allow other heirs to benefit from the estate. 

  • Government Benefits: Maintain eligibility for Medicaid or other means-tested programs (note: renouncing may still be considered a transfer of assets). 

Legal Requirements Under EPTL §2-1.11 

To validly renounce an inheritance, you must adhere to these key legal steps: 

  • Timing: Within 9 months of death 

  • Written Document: Signed and notarized 

  • Filing and Delivery: Surrogate Court and Execution 

  • Irrevocability: Cannot be undone 

Late Renunciations and Court Approval 

If you miss the nine-month deadline, you may petition the Surrogate's Court for approval. The court will assess: 

  • Reason for Delay 

  • Impact on Other Heirs 

  • Good Faith 

Key Considerations Before Renouncing 

Effect on Asset Distribution: 

  • Tax Consequences 

  • Creditor Protection 

Steps to Renounce Your Inheritance 

  • Consult Professionals 

  • Draft the Renunciation 

  • Sign and Notarize 

  • File and Notify 

  • Keep Records

This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007

Kevin McKernan
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