In New York City, if you’re set to inherit a part of or the entire estate under a will or because you’re the next of kin, but would prefer your share go to someone else, you may wonder what your options are. Especially, if the deadline to file a disclaimer or renunciation has already passed.
Here’s what you need to know.
What Is a Disclaimer or Renunciation?
A disclaimer (also called a renunciation in New York law) is a legal way to refuse an inheritance. When properly filed, it’s as if the disclaiming person died before the decedent, allowing the inheritance to pass directly to the next in line.
How Would this Work in Practice
Under a Will: the decedent’s will provides that his estate will be divided between his two neighbors, Tom and Janet, in equal shares if they survive him. Tom is on government assistance and will lose his Medicaid eligibility if he inherits. Tom would rather refuse this inheritance and by filing a legal disclaimer, Janet will inherit the entire estate as if Tom had predeceased her.
No Will: Tom and his sister are the only heirs of his father’s estate. Their father always expressed his wishes that he wanted his daughter to inherit his house, the only asset of the estate. Because Tom’s father never got around to making a will before he died, under NY law, the home passes to both children equally. Here, Tom can disclaim his share and the home will pass entirely to his sister as his father wanted.
But There’s a Catch:
To be valid under both New York law and the IRS, the disclaimer must be:
- In writing and irrevocable
- Filed within 9 months of the decedent’s date of death
- Filed before the person has accepted any benefit from the inheritance
If this window has closed, the opportunity to disclaim tax-free has passed.
What If I Missed the Deadline?
If you miss the deadline, you cannot disclaim the inheritance. However, you still have the option to transfer your share – but this changes the legal and tax implications significantly.
Giving Your Inheritance After the Deadline
If more than nine months has passed since the date of death, your only option is to accept the inheritance and then gift it. However, giving large gifts can have some issues.
1. Gift Tax Consequences
- Any transfer of your inherited share will be considered a gift under federal law.
- If the gift exceeds the allowed annual gifting amount ($19,000 per recipient for 2025), you must file IRS Form 709 (Gift Tax Return).
- You likely won’t owe tax unless you exceed the lifetime exemption amount (~$13.99 million in 2025), but the filing is still required.
2. Medicaid and Creditor Risks
- Gifting assets could make you lose benefits or trigger penalties under the 5-year lookback rule if you are on Medicaid or may need Medicaid within the next five years.
- Gifting your inheritance may be challenged in court if you owe money to creditors.
How to Make the Gift Properly
If you choose to give your inherited share to your sibling, make sure it’s done correctly:
- Put it in writing with a formal gift or transfer agreement
- For real estate, complete a deed transfer and record it with the county clerk
- For financial accounts, work with the institution to retitle or transfer ownership
Consulting with a New York estate attorney is highly recommended.
FAQs
1) Can I refuse just part of my inheritance, or must I disclaim the entire share?
A disclaimer must apply to the entire interest you’re entitled to receive. You cannot selectively disclaim only a portion—partial disclaimers are not valid under New York or federal law. In other words, you cannot keep the inheritance of the house and give away the cash.
2) Can a minor or incapacitated person disclaim an inheritance?
Not without court approval. A legal guardian would need the Surrogate’s Court approval to disclaim on behalf of a minor or an incapacitated person. The court will approve only if the disclaimer is in the minor or incapacitated person’s best interest.
3) Can a disclaimer be revoked if I change my mind?
Once a disclaimer is signed and filed with the Surrogate’s Court, it is irrevocable.
4) Can I disclaim if I’ve already used or taken some of the inheritance?
No. If you’ve accepted any benefit, even indirectly (like cashing a check or using estate funds), you’ve waived your right to disclaim.
5) Is a verbal refusal or waiver of inheritance ever valid?
New York requires a written, signed, and notarized disclaimer filed with the Surrogate’s Court and, in some cases, the IRS. A verbal statement holds no legal weight.
Contact Us
If you need to disclaim an inheritance or need help gifting your estate share, contact us at Mishiyeva Law at 646-233-0826.
Mishiyeva Law, PLLC.
85 Broad Street 18th Floor
New York, NY 10004
United States
