Puerto Rico Renunciation and Disclaimer of Interest in Life Insurance Proceeds

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Multi-State
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US-01697BG
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Description

Disclaimers are used by those who receive property as heirs or legatees in an estate, or by beneficiaries of a non-testamentary transfer of property at death; for example, the beneficiaries of a life insurance policy. A disclaimer is simply a declaration by the person entitled to property that the interest in that property is disclaimed or renounced. A disclaimer allows the disclaiming heir or beneficiary to disclaim an interest in such a fashion that the right to the property that is disclaimed is treated as if it never existed.


The Uniform Disclaimers of Property Interests Act (which has been adopted by a number of states) provides the authority to make disclaimers, what interests may be disclaimed, the time when disclaimers are effective, and the effect on the distribution of the disclaimed property interests.

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FAQ

Retirement Accounts and Life Insurance Policies: As per Florida Statutes § 732.402, assets with designated beneficiaries, such as life insurance policies or retirement accounts, bypass probate and directly pass to the named beneficiaries (non-probate assets).

The answer is, in most cases, ?no.? Life insurance is one of those assets that do not normally go through Florida probate. This is because of the life insurance policy names a beneficiary. As a result, upon the death of the insured, the life insurance proceeds are paid directly to the beneficiary, not to the estate.

In the law of inheritance, wills and trusts, a disclaimer of interest (also called a renunciation) is an attempt by a person to renounce their legal right to benefit from an inheritance (either under a will or through intestacy) or through a trust.

Thus, as a beneficiary of a life insurance policy, the moment the insured passes away, you have a claim to the life insurance proceeds without the need to worry about probate. That means that you entirely bypass the whole probate court proceeding for those funds.

It is all the same process as it just means that you don't want it and what was left to you will go to the next person in line. If no other named beneficiaries were named then it would go through the normal probate process to be left to someone related to the deceased.

What Assets Avoid Probate in Florida? Revocable Trusts. ... Designated Beneficiaries. ... Transfer on Death Accounts. ... Joint Retirement Accounts. ... Tenancy By Entireties. ... Florida Homestead. ... Furniture and Appliances. ... Vehicles.

DISCLAIMER OF RIGHTS IN SURVIVORSHIP PROPERTY. (a) On the death of a holder of survivorship property, a surviving holder may disclaim, in whole or in part, an interest in the property of the deceased holder that would have otherwise passed to the surviving holder by reason of the deceased holder's death.

The life insurance death benefit is not intended to be part of your estate because it is payable on death ? it goes directly to the beneficiaries named in your policy when you die, avoiding the probate process. However, life insurance proceeds are considered part of an estate for tax purposes.

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Puerto Rico Renunciation and Disclaimer of Interest in Life Insurance Proceeds