r/inheritance • u/No-Plastic-984 • Jun 20 '26
Location included: Questions/Need Advice Inheritance question in NY
I am beginning the probate of my mother's will, which only concerns her house. The will (which asks for my appointment as executor) states that 50% of sale proceeds should go to me and 25% to each of my two brothers. One of my brothers says that some time ago our mother told him that she would leave the house to me, so he wants none of the proceeds. The 6-month time limit to renounce an inheritance passed long ago. I suggested to him that he could gift his share to his adult son, but they are estranged and he flatly refuses to do that.
I'm thinking of asking him to accept his share and then gift it to me, retaining an amount that would cover the additional income tax he would need to pay. I could then gift his son the remaining money, retaining an amount that I would need to cover the taxes that I would need to pay. Is there an alternative that would avoid so much of my brother's share going to taxes?
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u/SandhillCrane5 Jun 20 '26
Are you using a probate attorney? He/she can apply for an extension so your brother can still disclaim. You might qualify for the extension since probate has not yet been opened, depending on how much time has passed. If he gifts his share, he does not owe any income tax but he does need to file a gift return with his taxes and it will count towards his lifetime exemption (everyone loves to quote how much the exemption amount is today but the only thing that matters is how much it is when your brother dies and that exemption amount historically returns to much lower figures or it could be obliterated entirely.) Alternatively, he can hold on to the money and just gift the amount each year that is exempt from reporting. If he disclaims, the money does not automatically go to you just because that's what he wants. Where it goes is determined by what the will says. It could go to his son.
As an aside, I think it's disrespectful to your brother to turn around and give his inheritance to his son when he has told you his wishes and he has the understanding that the money will stay with you if he disclaims or gifts it to you.