I previously wrote on how to disclaim property under federal law to avoid or minimize estate taxes. While estates may fall short of the federal estate tax exemption limit, currently set at $5 million, individuals may still need to disclaim property to avoid Minnesota estate tax. Many individuals think their estates also fall short of the Minnesota estate tax exemption limit, currently set at $1 million. Yet once they begin calculating all of their assets, many estates are closer to, if not more than, the $1 million exemption.
Minnesota Formalities
Minnesota has its own disclaimer statutes outlining the requirements to properly disclaim property under Minnesota law. The formalities of the Minnesota disclaimer under Minnesota Statute §524.2-1107(c) are similar to that of the federal disclaimer and require that the disclaimer:
- be in writing,
- declare that it is a disclaimer,
- describe the interest or power being disclaimed,
- be signed by the person or fiduciary making the disclaimer, and
- be acknowledged in the manner provided for deeds of real estate to be recorded in this state, e.g. notarized.
Minnesota disclaimers, however, are no longer required to be filed with a court (although it is still acceptable to do so). Instead, the disclaimer must be delivered to the person holding the property interest that is to be disclaimed, e.g. personal representative or trustee. A MN disclaimer can also be made at anytime, as long as the statutes do not bar the disclaimer. This is different from the federal disclaimer, which must be made within nine months of the date causing the transfer of property. Minnesota Statute §524.2-1106 outlines the various reasons a disclaimer could be barred – most notably is if the disclaimant accepts a portion, or all, of the interest sought to be disclaimed.
Trustee as Disclaimant
Lastly, in Minnesota, a trustee can disclaim property. A court order is not necessary for a trustee to disclaim property if the instrument creating the property interest permits the trustee to disclaim. However, if the instrument does not permit the disclaimer, then a court order is required in order for the trustee to properly disclaim.
As noted before, if you believe a disclaimer is appropriate, be sure to contact your tax, financial or legal advisor before accessing any of the potentially disclaimed property. If you fail to do, you may not be able to disclaim.
I would like to get a free or paid consultation regarding disclaimer of an inheritance., I live in Texas and I filed the disclaimer from Texas. I have creditors but we can discuss that when you get back to me. Thanks
Tom Schober 9156303693
Thanks for your comment, Tom! Unfortunately, we can not provide you with legal advice. You should consult a licensed attorney in Texas that specializes in probate work. Thank you for reading Epilawg!
Can a disclaimer of a inheritance happen beyond 9 months of a death? The reason I’m asking is my Mother passed away on July 14, 2017 and the first executor stepped down and the second one in line took the will to probate even though she didn’t need to. Our Mother willed the home to all 6 of us kids. The home is 3 hours away from where I live and it is in a small town. The house has not been lived in for over 10 years and was never cleaned out. That said the Judge finally gave the ruling 2 weeks ago. There is so much discontent that I don’t want to be apart of it. What options would I have? Could I give my 1/6th to another sibling for example since they are motivated to deal with this?
Thanks for your question, Angie. We appreciate you reading Epilawg. Unfortunately, we cannot provide specific legal advice on this site. Be sure to contact a legal professional in your area with these questions. Thanks again for reading!