Although it may seem counter-intuitive to turn down an inheritance, there are situations in which it may actually be beneficial to do so. When a person refuses to accept an inheritance, that person is said to disclaim it, and the effect is the same as if the heir had predeceased the person who died. The gift will pass on to the next person in line to receive it.
One reason to disclaim a gift is when the asset is actually undesirable, for instance a piece of real estate with a low potential sale value but high property taxes. Other gifts may come with strings attached, such as a requirement to get married or to take care of the deceased’s pet.
Another reason for disclaiming an inheritance is for the heir to avoid estate taxes while passing wealth on to his or her own heirs, who may be in a lower tax bracket. Individuals who are already wealthy and potentially facing a significant estate tax may want to disclaim an inheritance, allowing it to pass directly to their children without it ever becoming part of their estate. This may be useful for many types of assets, but disclaiming an inherited IRA may have the additional benefit of passing the asset along to an heir who can stretch out distributions over a longer period.
Disclaiming an asset is not something to take lightly or decided upon spontaneously. Instead, disclaimers can be part of your estate planning process, undertaken only with the advice of a qualified estate planning attorney.
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The New York State attorney general, investigated the matter, saying that giving seniors 90 days to leave their homes was unreasonable. Some had Alzheimer’s disease or other dementia; family members worried that they would not be able to find the same level of care at another facility and that moving would be traumatic.
If you have countable resources above the limits, you may be told that you need to “spend down” your assets, paying for nursing home care yourself, until you reach the resource limits, at which point Medicaid begins covering the cost. This is what happens in many cases. In other cases, a family may anticipate the need for long-term care and wish to transfer assets to the next generation ahead of time, in order to preserve the family’s resources while still qualifying for Medicaid. This is an excellent strategy, as long as the Medicaid rules are followed.
Most people are aware that seniors are more at risk for Alzheimer’s disease and other cognitive impairment. About 11 percent of seniors have Alzheimer’s disease, but it is crucial to understand that cognitive decline is not a normal part of aging. Therefore, changes such as increased forgetfulness, confusion or disorientation should be taken seriously. With a prompt diagnosis, seniors can benefit from treatment earlier, and any necessary changes to their living environment can be made in order to keep them safe.
A 2014 rule change by the New York City Department of Finance instituted a new requirement that a spouse or disabled adult wishing to take over a Disability Rent Increase Exemption (DRIE) or Senior Citizen Rent Increase Exemption (SCRIE) from a deceased head of household file an application within 60 days of the death. According to the lawsuit, households receiving the benefits were not given notice of the new rule. As a result, many recently widowed seniors were hit with alarming rent increases.
ke of their loved ones and themselves.
To help families ensure their seniors stay warm and safe during winter months, Giampa recommends the following precautions:
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