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daglayzer
New Member

Should I disclaim or forfeit a Teachers retirement system inheritance so the kids can inherit the pension? Is there a difference?

My siblings left me as beneficiary to her TRS retirement.  But my siblings kids are now older and can take care of themselves.  Does it matter if I forfeit vs disclaim the inheritance so they can claim it.  They may not be listed as beneficiaries.  TRS will not give me that info.  Thank you

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3 Replies
dmertz
Level 15

Should I disclaim or forfeit a Teachers retirement system inheritance so the kids can inherit the pension? Is there a difference?

Did you mean to say, "My *sibling* [singular, the decedent] left me as beneficiary to her TRS retirement?"  

I don't see how you can "forfeit" this inheritance without disclaiming, but it's a matter of state law.  Qualified disclaimers can be tricky, so you need to consult with an estate attorney.  You would also need to be sure that the retirement plan will recognize a qualified disclaimer.  A qualified disclaimer results in you being treated as having predeceased the deceased retirement account participant.  You cannot direct where your share goes when you disclaim.  Where the share that you disclaim will go will be determined by the beneficiary agreement and the terms of the retirement plan.  That could end up being the decedent's estate if there were no other primary or contingent designated beneficiaries, and that might not produce the desired result.  You might be better off just receiving the inheritance and gifting money to the kids.  But an estate attorney can help you with this.
Anita01
New Member

Should I disclaim or forfeit a Teachers retirement system inheritance so the kids can inherit the pension? Is there a difference?

We can't tell you that because it's not a tax question.  You really need to call your state and ask who to talk to about this within your state.  It's possible one or both of those actions could result in the money simply going to the state and only they would know their inheritance rules.  If you can find an estate or inheritance attorney locally, you could ask them also.  Don't rely on answers from here.   They may be free but not correct.

Should I disclaim or forfeit a Teachers retirement system inheritance so the kids can inherit the pension? Is there a difference?

when  a sibling fails to keep beneficiaries up to date, the result may be unexpected. Or, maybe she wanted you to have that money..
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