That’s an excellent – and often overlooked – question.
One option is to disclaim their inheritance. A beneficiary who disclaims
their inheritance essentially passes the inheritance to the next generation.
The disclaimer is a good strategy when you want your children to receive
your inheritance rather than lose it to your creditors. A disclaimer is
a complete, unqualified refusal to accept rights or property. You can
disclaim both gifts and inheritances. Your alternate beneficiary may be
your children, spouse or whoever else you designate to receive the gift.
Your disclaimer must be in writing and you must not have already accepted
any part of the property or any other ownership benefits. Your disclaimer
also must be received by the transferor within nine months from when the
transfer or document creating the interest (the bequeath or gift) is made.