Disclaimer of Inheritance: How to Refuse What You've Been Left

Why would someone disclaim an inheritance?

The most common reasons for disclaiming an inheritance are:

• The beneficiary has a large estate themselves — accepting the inheritance would increase their estate and generate more IHT on their own death
• The inheritance is a liability — for example, a property with a large mortgage, or a share in a business with significant debts
• The beneficiary is means-tested for benefits — accepting inheritance may disqualify them
• Family agreement — a surviving child may want the inheritance to pass directly to their own children
• Simplification — to reduce the number of beneficiaries and simplify estate administration

A disclaimer must be total

This is the most important rule: a disclaimer is all or nothing from a particular source. You cannot accept a portion of a gift and disclaim the rest. For example:

• If you are left £100,000 in a will, you must either take all of it or disclaim all of it
• If you are entitled to a share of the residue, you must disclaim your entire residuary share — you cannot keep part
• If you are entitled to both a specific legacy and a share of the residue, these are separate gifts — you can disclaim one and accept the other

If you want to redirect a gift to a specific person, you should use a deed of variation instead of a disclaimer. See our deed of variation guide.

You cannot disclaim after accepting a benefit

A disclaimer is only valid if the beneficiary has not already accepted a benefit from the gift. Acceptance can be express (signing a receipt, asking for the money to be transferred) or implied (using the inherited property, withdrawing from an inherited bank account).

In practice, executors should be careful not to distribute assets to beneficiaries who are considering a disclaimer. Once a beneficiary has received their share — even informally — the right to disclaim is lost.

How to make a disclaimer

A disclaimer can be made verbally, but for legal certainty (and to establish the date of disclaimer for IHT purposes) it should always be in writing. The disclaimer should:

• Be addressed to the executor(s)
• Identify the gift being disclaimed by reference to the will or intestacy entitlement
• State clearly that the beneficiary disclaims all interest in the named gift
• Be signed and dated by the disclaiming beneficiary
• Include a statement that the disclaimer is made under s.93 IHTA 1984 if IHT effect is intended

There is no prescribed form. A straightforward letter will suffice for simple disclaimers. Instruct a solicitor for complex situations involving significant assets or trust interests.

IHT effect of a disclaimer

For IHT purposes, a disclaimer of a bequest or intestacy entitlement made within 2 years of death is treated as if the original gift was never made (section 93 IHTA 1984). The disclaimed asset falls back into the estate and is taxed as if it were always part of the residue.

This means the disclaiming beneficiary is not treated as having made a gift themselves — no PET or chargeable transfer arises for them. The IHT is recalculated based on the new distribution of the estate after the disclaimer.

If a disclaimer changes who pays IHT (e.g., by redirecting assets from an exempt beneficiary to a non-exempt one), HMRC must be notified. In most cases, disclaimers save IHT or are neutral — but take advice where the outcome is uncertain.

Where does the disclaimed gift go?

This depends on the terms of the will:

• If a specific legacy is disclaimed, check whether the will has a substitution clause — if so, the gift passes to the substitute beneficiary. If not, it falls into the residue.
• If a share of residue is disclaimed, the remaining residuary beneficiaries take the disclaimed share in their respective proportions (unless the will says otherwise).
• Under intestacy, the disclaimed share passes as if the disclaiming beneficiary had died before the deceased.

The disclaiming beneficiary has no control over the ultimate destination. If they want to direct who benefits, they should use a deed of variation.

Practical steps

1. Decide quickly — you cannot disclaim after accepting a benefit
2. Check the will for substitution clauses and residuary provisions
3. Draft a written disclaimer and have it reviewed by a solicitor
4. Send it to the executor before any distribution is made
5. Keep a copy — the date may be important for IHT

For the broader estate administration context, see our estate administration checklist, complete UK probate guide 2026, and applying for probate guide. The IHT guide covers the tax implications in detail. For distributing the estate after a disclaimer, see our distributing the residuary estate guide. For redirecting a gift to a specific person, see the deed of variation guide. For beneficiaries refusing inheritance, see also our beneficiary refuses inheritance guide. For the executor's first steps, see our executor first steps guide. For estate accounts, see our estate accounts guide. Farra can help — get started here.