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How can beneficiaries prevent their creditors from seizing their future inheritance?

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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.
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