Estate Law Questions? Ask an Estate Lawyer.
Hi and welcome to JA. Ray here to help you today.
Can you tell me exactly why they want to disclaim it, are they wanting it to go to the younger sister?
So here you would have to ask Fidelity what law applies.This isn't say a legal statute question but rather terms of the account.If they cannot disclaim it here, they can always claim it and then gift it to the sister.
The lifetime gift limits are $5,450,000 so they could easily cash it and then gift it to the sister. It appears to me that California law applies here, but the Fidelity people have final say in this matter.
Whoever inherits this may owe taxes or they can defer the taxes and roll it over and draw it out as through it were their IRA.If the parents were to disclaim, and the sister for some reason was held to not be the legal heir then it passes through his estate, probate would have to be opened and it goes under will or if no will to the nearest legal heirs.Hence I guess I wonder if the parents here wouldn't be better to claim it and then regift it to the younger sister.
I appreciate the chance to help you tonight.I wish you the best here and a happy 4th of July.