Can I Sign Over My Inheritance To Someone Else?

In California, if you’ve inherited assets but wish to transfer your inheritance to someone else, you have several legal avenues to consider. Understanding these options is crucial to ensure compliance with state laws and to address potential tax implications.

1. Assignment of Inheritance

An assignment involves transferring your right to receive an inheritance to another individual or entity. This process requires legal documentation and must be filed with the probate court overseeing the estate. Key aspects include:

• Assignor and Assignee: The person transferring their inheritance rights is the assignor, while the recipient is the assignee.

• Irrevocability: Once executed, an assignment is typically irrevocable, meaning you cannot reclaim the transferred rights.

• Tax Implications: Both parties should consult tax professionals to understand potential tax consequences arising from the transfer.

For instance, if you inherit a property but prefer a sibling to have it, you can assign your inheritance rights to them through a formal assignment. 

2. Disclaimer of Inheritance

A disclaimer allows you to refuse or renounce your right to an inheritance, effectively treating it as if you predeceased the decedent. Important considerations include:

• No Control Over Redistribution: By disclaiming, you cannot direct who receives the disclaimed assets; distribution follows the terms of the will or state intestacy laws.

• Time-Sensitive: Disclaimers must be executed within nine months of the decedent’s death and before accepting any benefits from the inheritance.

For example, if you wish for your share to pass to your children, disclaiming might achieve this outcome, depending on the estate plan’s provisions.

3. Gifting the Inheritance

After formally accepting the inheritance, you can gift it to another person. This method involves:

• Ownership Transfer: You must first take possession of the inherited assets before gifting them.

• Gift Taxes: Be aware of federal gift tax regulations, which may require filing a gift tax return, especially for substantial amounts.

For example, inheriting a sum of money and then gifting a portion to a friend would necessitate adherence to gift tax laws. 

4. Considerations for Trust Beneficiaries

If your inheritance is held within a trust, transferring your interest can be more complex:

• Anti-Assignment Clauses: Many trusts include provisions preventing beneficiaries from assigning their interests to protect assets from creditors.

• Consult the Trust Document: Review the trust’s terms and consult with a legal professional to determine if assignment is permissible.

For example, a trust may explicitly prohibit beneficiaries from transferring their interests, limiting your ability to assign your inheritance. 

Conclusion

Transferring your inheritance in California is feasible through assignments, disclaimers, or gifting, each with its own legal and tax considerations. It’s advisable to consult with an estate planning attorney to navigate these options effectively and ensure compliance with all applicable laws.

Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions, call (626) 460-1763 or email LV@MoravecsLaw.com.

Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.