What is a Disclaimer of Interest form, and Should You Sign It?

When someone inherits property, they can refuse to accept the bequest. The formal legal term for this process is a disclaimer of interest, and Texas law defines how individuals can renounce an inheritance.

Why Refuse an Inheritance?

Individuals may choose to renounce an inheritance or other bequest for any number of reasons. A property may have a high tax bill, steep maintenance costs, or multiple liens. They may also not want to take anything from the deceased. 

Texas doesn’t require individuals to state why they are disclaiming their interest in a property. They do, however, have to disclaim their interest in writing.

Disclaimer of Interest Requirements

Texas law requires that individuals complete all of the following steps to decline an inheritance. This means that a disclaimer:

• Must be in writing
• Explicitly states that the individual is declining the property
• Describes the property or interest
• Be signed by the disclaimant, the person renouncing their interest in a property
• Be delivered or filed through personal delivery, first-class mail, facsimile, or e-mail

Texas allows individuals to file for a partial disclaimer as well. In this situation, an individual keeps part of the interest but refuses the other part of it. 

In all disclaimers, one of the key requirements is that individuals sign the forms. Without a signature, a disclaimer is not valid. On the other hand, individuals shouldn’t sign unless they’re confident in their decision to end their interest in a property. 

When Texas Prohibits or Limits Disclaimers

In certain situations, individuals are barred from disclaiming a property. If an individual either takes possession of an interest or exercises control over the interest, they can no longer renounce their interest in the property.

If an individual voluntarily transfers or otherwise assigns their interest to another person or organization, they are also barred from filing a disclaimer of interest. Finally, if the property in question is sold at a judicial sale, individuals cannot disclaim their interest.

If you need to declaim interest in a property, a skilled Texas property law attorney can help. The attorneys at Manfred Law help Texas property owners resolve property issues. Call us at 713-547-5460 or contact us online to schedule your consultation.