VIC Beneficiary Disclaiming Benefit Through an Affidavit?

[ttp]

My aunt is executor of will of my late grandmother's deceased estate which is given to me as the main beneficiary. I don't want it and want to distribute it to other family members. Can I disclaim a benefit by making an affidavit with the condition to have it distribute to others?

 

[John R]

@ttp - A surprisingly common scenario.
The short answer is yes, a beneficiary can reject/refuse to accept a gift/inheritance.

15 Can beneficiaries reject a gift?
Beneficiaries can refuse to accept a gift from a will. The executor will usually require the beneficiary to give written confirmation that they refuse to accept the gift. Before rejecting a gift, beneficiaries should obtain legal advice. In particular, beneficiaries in receipt of centrelink payments should seek advice as to whether the rejection of the gift will affect their centrelink entitlements.

See also: A guide for beneficiaries | LPLC

 

[Rob Legat - SBPL]

The rules in Victoria may be different, but my understanding is that you can't disclaim a benefit and stipulate where it is to go. To do that you would need to accept the bequest and then transfer it yourself.

Once disclaimed, that bequest falls back into the estate pool of assets and is dealt with according to the terms of the will.

 

[John R]

@Rob Legat - SBPL - Yes, that was my understanding too.

 

[ttp]

Thank you Rob and John. Can I make a statement to say I will disclaimed all the benefits provided that the below conditions are met?

 

[John R]

@ttp - No. You can reject/refuse to accept a gift - but there is no obligation/requirement for the executor to agree to any conditions on where the gift should be redirected, etc.

 

[Rob Legat - SBPL]

That won't be a disclaimer, but an assignment of your interest as beneficiary. A disclaimer of interest works in that it takes effect before you receive any right to deal with the estate whatsover - including any ability to place conditions on how it is further dealt with. If you want to add conditions, you're accepting rights over the bequest - it's then too late to disclaim.

Be aware dealing with the estate by way of assignment may have implications for tax, stamp duty, government entitlements, and the like.

 

[John R]

Good point @Rob Legat - SBPL

 

[ttp]

Thank you you guys again.
I already make this assigment of interest by stating that "I will disclaimed all the benefits provided that the below conditions are met "
Can the contingent beneficiaries consider it as disclaimer by me?

 

[Rob Legat - SBPL]

As I stated, a disclaimer is not an assignment. If you've disclaimed your interest, you cannot make the conditions. In any case, the executors should be requiring a formal deed of disclaimer before relying on it (and probably evidence of independent legal advice) to ensure they're covered.