Can You Refuse an Inheritance in Texas? Understanding “Disclaimers” Under the Texas Estates Code

Can You Legally Say “No” to an Inheritance in Texas?

Most people assume that when someone dies and leaves you money or property, you automatically receive it.

But under Texas law, that is not always true.

In many situations, heirs and beneficiaries can legally refuse an inheritance—sometimes for smart financial, tax, or legal reasons. This process is called a disclaimer.

When done properly, a disclaimer can:

• Protect assets from creditors
• Avoid tax problems
• Preserve government benefits
• Redirect property to other heirs
• Simplify family disputes

But when done incorrectly, it can completely backfire.

Let’s walk through how disclaimers work under the Texas Estates Code.

What Is a “Disclaimer” Under Texas Law?

A disclaimer is a formal legal refusal to accept property that you are entitled to inherit.

Texas law expressly allows this.

Under Texas Estates Code §122.051, a person may disclaim, in whole or in part, any interest in property or inheritance.

In plain English:

If you are entitled to receive something from an estate, you may legally say, “I don’t want it.”

If done correctly, the law treats you as if you never received the property at all.

Why Would Someone Refuse an Inheritance?

It sounds strange, but disclaimers are surprisingly common in real cases.

Here are some of the most frequent reasons:

1. Avoiding Creditors

If you are:

• Being sued
• Have judgments
• Owe back taxes
• Have major debt

Accepting an inheritance can expose it to collection.

Once you accept it, creditors may seize it.

But a valid disclaimer prevents the asset from ever becoming yours.

2. Protecting Government Benefits

If you receive:

• SSI
• Medicaid
• Disability benefits

An inheritance could disqualify you.

By disclaiming, the asset bypasses you and preserves eligibility.

3. Tax Planning

Sometimes high-net-worth families use disclaimers to:

• Reduce estate tax exposure
• Shift assets to lower-tax beneficiaries
• Optimize trust planning

This is especially common in blended families.

4. Keeping Peace in the Family

In some cases, a beneficiary disclaims so:

• A sibling receives more
• A child receives property
• A surviving spouse is protected

It can prevent litigation and resentment.

What Happens to Property After a Disclaimer?

Under Texas Estates Code §122.101, when someone properly disclaims:

The property passes as if the disclaimant had predeceased the decedent.

In other words:

Legally, you are treated as if you died before the person who left the inheritance.

So the property passes to:

• The next beneficiary in the will, or
• The next heir under intestate law.

You don’t get to “pick” who receives it unless the will already provides for alternates.

Strict Requirements: When a Disclaimer Is Valid

Texas law is very technical here.

Under Texas Estates Code §122.052, a disclaimer must:

✅ Be in Writing

✅ Be Signed

✅ Clearly Identify the Property

✅ Be Delivered to the Proper Party

✅ Be Timely

And timing is critical.

The 9-Month Deadline

For most purposes, especially tax planning, a disclaimer must be made:

Within 9 months after the decedent’s death.

This mirrors federal tax rules.

Miss this deadline, and you may lose major benefits.

The Biggest Trap: “Acceptance” Before Disclaimer

Here is where people get burned.

Under Texas Estates Code §122.103, you cannot disclaim if you have already accepted the property.

Acceptance includes:

• Taking possession
• Using the property
• Selling it
• Depositing inherited funds
• Exercising control
• Benefiting from it

Example:

If you deposit an inherited check into your account, you probably just killed your right to disclaim.

Partial Disclaimers Are Allowed

Texas law allows you to disclaim:

• Part of an inheritance
• Specific assets
• Percentage interests

For example:

You can disclaim real estate but keep cash.

This flexibility is often used in estate planning.

Disclaimers in Probate vs. Trust Cases

Disclaimers apply to:

• Probate estates
• Living trusts
• Life insurance proceeds
• Retirement accounts
• Payable-on-death accounts

Each has different procedural rules.

Mistakes are common when non-lawyers try to do this themselves.

Can a Disclaimer Be Revoked?

Usually: No.

Once properly filed, it is permanent.

You cannot later change your mind if circumstances change.

This is why professional advice matters.

When Disclaimers Go Wrong (Real-World Problems)

In practice, I regularly see:

❌ Late filings
❌Improper delivery
❌Hidden acceptance
❌Incomplete descriptions
❌Creditor challenges
❌Family disputes

Any one of these can invalidate the disclaimer.

Should You Ever Disclaim Without Legal Advice?

Almost never.

Disclaimers interact with:

• Probate law
• Tax law
• Creditor law
• Medicaid rules
• Trust law

A “simple form” from the internet is rarely sufficient.

How a Texas Probate Attorney Helps

A properly handled disclaimer should include:

✔ Statutory compliance
✔ Tax coordination
✔ Court filings if needed
✔ Creditor analysis
✔ Beneficiary planning
✔ Documentation for fiduciaries

Done correctly, it can save tens of thousands of dollars.

Done wrong, it can cost even more.

Final Thoughts: Sometimes “No” Is the Smartest Legal Answer

Texas law gives heirs powerful tools—but only if they are used correctly.

Just because someone leaves you property does not mean you must accept it.

In some cases, walking away is the best financial decision you can make.

If you are considering disclaiming an inheritance, speak with a Texas probate attorney before taking any action.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.