This
question does not typically arise when someone finds out they have been left an
inheritance. However, some circumstances may make an individual choose to
renounce their interest in a person’s will. Depending on the inheritance and
what state the decedent lived in, there can be hefty taxes, including
inheritance taxes, estate taxes, and income taxes. Avoiding the payment of abundant
taxes is just one reason someone may wish to renounce his inheritance. If an
individual does not want to accept an inheritance, he does not have to. However,
legal steps must be followed to validly renounce those rights.
What Can I Renounce?
A person living in North Carolina can
renounce (1) an entire inheritance or part of an inheritance; (2) any interest
in or power over property; (3) a fractional share, unless the decedent
expressly provided otherwise in his will; and (4) an intestate share.
How do I Renounce?
In North Carolina, the renunciation must:
(1) be in writing and name the transferor of the property; (2) describe the
interest being renounced; (3) declare the extent of the renunciation; and (4)
be signed by the person renouncing. The document typically must be filed within
nine months of the decedent’s death in order to be valid. The copy of
renunciation may be delivered in a number of ways, such as in person, through
first class mail, fax, email, etc. It is also necessary to be aware of the
location that the document must be filed, which depends on what type of
property is involved.
What is the Effect of Renunciation?
Renunciation is binding in North Carolina.
In other words, once a person files a signed copy, he cannot change his mind
and revoke the decision. This is a permanent decision that should not be taken
lightly. Therefore, it may be a good idea to contact an attorney and discuss all
of your options before choosing to renounce your rights to an inheritance.
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