Personal Finance

Refusal of an inheritance

  • Last Updated:
  • Jul 7th, 2010 2:45 am
Tags:
[OP]
Jr. Member
Jul 4, 2010
128 posts
119 upvotes

Refusal of an inheritance

What is the law concerning the refusal of an inheritance from a will (or even without a will) in Ontario?
Can the deemed beneficiary simply ignore the inheritance without any contact, or does he/she have to sign something declaring that they refuse all assets from the estate? (So that the remainder of the will/distribution can be executed without delay)

Does the relationship between the benefactor and beneficiary matter in such a scenario? (let's say a child was inheriting from a parent)

Also, what, if any, are the tax consequences (cap. gains?) for the person declining the inheritance? i.e. Are the assets considered to have been received by the person and disposed of immediately, or would the assets never legally pass into the possession of the beneficiary at any point?

A person can't be forced to inherit something, can they?

(Nevermind why a person might refuse an inheritance.)
10 replies
Deal Addict
User avatar
Apr 10, 2010
1394 posts
194 upvotes
DS99 wrote: Can the deemed beneficiary simply ignore the inheritance without any contact, or does he/she have to sign something declaring that they refuse all assets from the estate?
You need to sign a "Transfer of Inheritance" document and put my name as the new beneficiary. This way you are guaranteed fine in terms of all legal processes. :D
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2985 upvotes
What would be a legitimate reason to refuse an inheritance?

My guess is that somebody does not at all understand how estates work and thinks that there is some down side to being enriched.

Almost sounds like the silly thread on OT.
Deal Expert
User avatar
Nov 15, 2004
20482 posts
4243 upvotes
Toronto
Conquistador wrote: What would be a legitimate reason to refuse an inheritance?

My guess is that somebody does not at all understand how estates work and thinks that there is some down side to being enriched.

Almost sounds like the silly thread on OT.
Family strife. If someone molested you as a child or something and you've cut them out of your life I can see why you'd refuse when they tried to give you money in some stupid attempt to make it all okay.
Deal Addict
User avatar
Feb 16, 2010
1943 posts
29 upvotes
Read this to see if this applies to your scenario. You should be speaking with an estate administration lawyer on this only.

Escheats Act http://www.gov.pe.ca/law/statutes/pdf/e-10.pdf
The tragedy of life is not that it ends so soon, but that we wait so long to begin it. - Anonymous
Deal Addict
Feb 25, 2007
1438 posts
902 upvotes
Ottawa
I believe the technical term is disclaiming an inheritance. I'm not familiar with Canadian law on it, but in at least some jurisdictions to do so you have to sign a (what a surprise!) Disclaimer within a few months of the decedent's death to do so.

As to why to do it, I have heard of two cases that make some sense

- Inheritance of a real property in disrepair far away with little (net) value. The "not worth the hassle" argument.

- Beneficiaries who have a judgement against them or fear a judgement against them in the nearfuture, and do not want to receive assets which could be "taken away from them". Especially if the next in line beneficiary is a family member, in some situations disclaiming the inheritance may "protect" the asset.
Deal Addict
User avatar
Sep 26, 2007
3960 posts
146 upvotes
SC
you have the right to disclaim an inheritance or part of an inheritance.

it's probably worth it to ask a lawyer seeing how you have many questions.
Jr. Member
User avatar
Nov 18, 2009
192 posts
7 upvotes
Piro21 wrote: Family strife
Family strife is the main reason of people refusing inheritance. Some people deliberately use inheritance to show contempt to other people.
Deal Addict
Dec 28, 2006
2453 posts
116 upvotes
Saskatoon
Piro21 wrote: Family strife. If someone molested you as a child or something and you've cut them out of your life I can see why you'd refuse when they tried to give you money in some stupid attempt to make it all okay.

I can think of a few other things to do with the money. After all, the "molester" is dead, how would they know.

1. Take the money and spend it.

2. Take the money and donate it to charity.

3. Take the money, pay a (or more than one) homeless person $500 a day to piss on the molester's grave as many times a day as they can. $500 extra to take a crap.
Conquistador wrote: One other thing you should know for future reference. If it is on the subject of taxes, listen to ghostryder. He knows his stuff.
Deal Expert
User avatar
Nov 15, 2004
20482 posts
4243 upvotes
Toronto
ghostryder wrote: I can think of a few other things to do with the money. After all, the "molester" is dead, how would they know.

1. Take the money and spend it.

2. Take the money and donate it to charity.

3. Take the money, pay a (or more than one) homeless person $500 a day to piss on the molester's grave as many times a day as they can. $500 extra to take a crap.
It's not that the molester knows it, it's the fact that they're offering you the money in the first place. It's more about feelings than anything. This happens all the time, and everyone has their reasons for making the choice.
[OP]
Jr. Member
Jul 4, 2010
128 posts
119 upvotes
okaywithme wrote: Read this to see if this applies to your scenario. You should be speaking with an estate administration lawyer on this only.

Escheats Act http://www.gov.pe.ca/law/statutes/pdf/e-10.pdf
houska wrote: I believe the technical term is disclaiming an inheritance. I'm not familiar with Canadian law on it, but in at least some jurisdictions to do so you have to sign a (what a surprise!) Disclaimer within a few months of the decedent's death to do so.
xlfe wrote: you have the right to disclaim an inheritance or part of an inheritance.

it's probably worth it to ask a lawyer seeing how you have many questions.

Ok, thanks for the responses. :)

Top