Disclaiming interest as a beneficiary of Non-qualaified deferred annuity
The client has 2 Deferred annuities naming 1 son as a primary beneficiary and the rest of his children as contingent beneficiary. The client passed away. The primary beneficiary wants to disclaim 2/3rds of his interest. Can he do it? Can it be a qualified disclaimer as per IRS revenue code 2518? Please advise.
Permalink Submitted by Alan - IRA critic on Wed, 2015-11-18 19:14
He should be able to do it as long as he is not included in the contingent beneficiary wording. Procedures can vary from state to state.
Permalink Submitted by Ponni Nainar on Wed, 2015-11-18 20:09
Thanks for your reply
Permalink Submitted by Ben Meyer on Thu, 2015-11-19 14:02
If he is also included as a contingent beneficiary, can he word his disclaimer to disclaim in both primary and also contingent capacities?
Permalink Submitted by Alan - IRA critic on Thu, 2015-11-19 21:14
Yes, I believe so.
Permalink Submitted by Bruce Steiner on Sun, 2015-11-22 01:02
Yes, he can disclaim. The lawyer handling the estate, or the son’s estate planning lawyer, will know how to draft the disclaimer, and the procedural requirements with respect to the disclaimer.