Yes. In Wisconsin, a beneficiary may disclaim (refuse) an inheritance, and if the disclaimer is done properly, the law treats the person as though they predeceased the decedent with respect to the disclaimed property. This right applies to beneficiaries under a will, heirs under intestate succession, persons named in a trust, and, when permitted by state and applicable federal rules, recipients of nonprobate property such as life insurance or retirement accounts; a fiduciary (for example, a guardian or agent under a power of attorney) may disclaim on another’s behalf only with proper authority and, where required, court approval.
To be valid, a Wisconsin disclaimer must meet several requirements. It must be in writing, clearly state the intent to disclaim the interest, and be signed by the person disclaiming (or an authorized representative, if permitted). It must also be delivered to the appropriate party such as the personal representative, trustee, or holder of legal title to the asset and it must be timely: generally within 9 months of the decedent’s death and before the disclaimant has accepted the property or exercised control over it.
A proper disclaimer is irrevocable and causes the property to pass as if the disclaimant had predeceased the decedent and to alternate beneficiaries named in the governing instrument or, if none, to heirs under intestacy. The disclaimant cannot control where the property goes. A disclaimer is invalid if the person has already accepted benefits from the property, attempts to direct or control its disposition, tries to partially disclaim non-severable interests contrary to the governing instrument, or fails to meet the statutory timing or delivery requirements. Properly executed and timely disclaimers are generally recognized for federal estate and gift tax purposes if they satisfy the applicable rules.
If you would like to discuss this matter more thoroughly, please reach out to our Madison Wisconsin Estate Planning attorneys. We are here to help!