No, gifts in probate generally do not need to be accepted by recipients under Rhode Island’s legal jurisdiction. After a loved one passes away, their Estate will enter the probate process in accordance with state laws. If the person who passed away nominated someone in their Will to handle their affairs (also known as an Executor), that person would manage the probate process and ensure that you are contacted if you may be entitled to a portion of the Estate.
Read: I’ve Been Named the Executor of an Estate- What Do I Do?
Can You Reject An Inheritance?
If you have been notified that you were named as a beneficiary in an individual’s Estate, you can disclaim, or reject, a gift as part of the probate process. To officially reject an inheritance in Rhode Island, you must file a formal disclaimer within nine months after the deceased’s death. If the named beneficiary (the person who wishes to reject their inheritance) is under 21, the deadline to file is nine months after that individual’s 21st birthday. A Rhode Island probate lawyer can help you navigate the filing process and ensure your disclaimer is filed properly to avoid potential setbacks. If you do not properly disclaim your inheritance, you could be held responsible for taxes and other fees associated with the asset’s ownership during the time that you are considered its owner. If you are disclaiming real estate property from your inheritance, then you may also be required to record a disclaimer in the town the real estate is in.
What Happens if You Reject Your Inheritance?
Once you have officially disclaimed assets left to you in a Will, you are no longer able to claim any of that property. Disclaiming assets means that you are legally rejecting your ability to inherit designated assets from the Estate. It is highly recommended that you consult with a qualified attorney and other relevant professionals about your desire to disclaim an inheritance because the process cannot be reversed once finalized. The probate process will proceed by finding the next eligible beneficiaries as designated in the decedent’s Will or in accordance with Rhode Island State inheritance laws. It is important to note that you will not be allowed to determine who inherits the assets that you have disclaimed.
Does Inheritance Affect Social Security Disability?
Social Security Disability Insurance (SSDI) is not affected by inheritance. SSDI benefits are based on an individual’s work history, not their assets, so a significant increase in assets does not generally affect SSDI eligibility. Although SSDI benefits are not subject to change following a change in assets, other programs like Supplemental Security Income (SSI) may be affected. You can read more on that in the next section.
Does Inheritance Affect Government Benefits?
The short answer is that yes, an inheritance can affect your eligibility for government benefits, such as SSI and Medicaid. If your eligibility for government benefits is based on your income, assets, or other factors that may change with the prospected inheritance, it is important to speak with a professional who can help you determine the effects that this may have on your qualification. You should report any significant changes in financial circumstances to relevant agencies to avoid potential delays in payments or suspension of benefits. Disclaiming your inheritance may not be the best option based on your own case details as it may ensue a penalty of such benefits. We highly recommend that you contact a Rhode Island probate attorney to determine your options moving forward.
Does an Inheritance Affect Medicaid?
Medicaid applications can be a significant undertaking, especially when you are experiencing significant financial changes like the distribution of an inheritance. The truth is that your Medicaid eligibility could be affected by an inheritance even if you choose not to accept the assets set aside for you. Medicaid carefully considers assets given away by you both within the 5 year look-back prior to your application submission and may reconsider your eligibility based on significant changes while you are receiving Medicaid benefits. If Medicaid or another creditor has reason to believe that you have declined a gift or inheritance to avoid having that asset liquidated to pay for care or other needs, you may still be held responsible for relevant costs. A qualified Medicaid Specialist or Rhode Island elder law attorney can help you determine your Medicaid eligibility and design a plan to help you protect your assets as much as possible.
Read: What is The Medicaid 5 Year Lookback Rule
About the Author
Daphne Hamilton is a compassionate Rhode Island probate attorney dedicated to helping families navigate the loss of a loved one and creating comprehensive plans that allow them to build their brightest future. Attorney Hamilton believes that a successful legacy plan starts with listening and empowering her clients to make decisions that align with their values by supporting them through every step of the estate planning process.