Beneficiaries disclaim and give up part or all of their share of the inheritance for numerous reasons. In some instances, a beneficiary wants to benefit the other beneficiaries (often brothers or sisters). However, beneficiaries with active creditors should consult with an attorney to understand the risks of making a disclaimer. Caution should also be exercised by beneficiaries who receive Medicaid or other government support. In some instances, a disclaimer could be a fraudulent transfer, taxable event, or violate Medicaid transfer rules and cause disqualification from the program. Consult with an attorney before disclaiming.
Under the Utah Code Disclaimer of Property Interests, found at UCA 75-2-801, a disclaimer can be made in whole or in part, but must be delivered in writing. Where a beneficiary is not subject to debts, creditors, or receiving government benefits like Medicaid, a beneficiary can utilize a written form that embodies the Utah Code disclaimer requirements. It is advisable to seek the advice of legal counsel before making a disclaimer.