Yes, you can refuse an inheritance in England and Wales. You do it in one of two ways: a disclaimer, which rejects the whole gift outright, or a deed of variation, which redirects it to someone else of your choosing. A deed of variation must be signed within two years of the death to be read back for tax as if the deceased had made it.
Why would you refuse an inheritance?
People refuse an inheritance to keep a windfall out of their taxable estate, to stop it reaching creditors during bankruptcy, or to pass the gift to a child, grandchild or charity who needs it more. Some refuse over means-tested benefits, though that route carries the trap set out below.
- Inheritance Tax planning. Passing a gift straight to your children can stop it inflating your own estate, which is taxed at 40% above the available allowances (gov.uk, as at August 2026, subject to change).
- Means-tested benefits. A lump sum can push savings over the capital limits and reduce a benefit, though refusing carries the trap set out below.
- Creditors or bankruptcy. An inheritance received while bankrupt may be taken to meet debts, so some prefer it never to reach them.
- Personal choice. Some would rather it went to a child, grandchild, or charity from the outset.
What are the two ways to refuse an inheritance?
There are two formal routes. A disclaimer rejects the whole gift, with no say over where it goes next. A deed of variation redirects it, in whole or part, to a person you name.
| Feature | Disclaimer | Deed of variation |
|---|---|---|
| What it does | Rejects the gift outright | Redirects the gift to a person you name |
| Can you choose who gets it? | No, it follows the will or intestacy rules | Yes, you decide the new beneficiary |
| Whole gift or part? | Usually the whole gift only | All or part of the gift |
| Time limit | Before you accept any benefit from it | Within 2 years of the death for tax read-back |
| Written document needed? | Yes, to record it clearly | Yes, in writing with the tax elections |
Based on HMRC, IHTM35161 and IHTM35002, as at August 2026, subject to change.
How do you disclaim an inheritance?
To disclaim, you reject the gift in writing before taking any benefit from it. The asset falls back into the estate and passes under the will or the intestacy rules. You cannot pick where it goes, nor usually disclaim only part.
- Do not accept any benefit first. Once you take the money, move into the property, or receive income from the asset, it is usually too late.
- Put the disclaimer in writing. Record that you refuse the gift, identify the asset, and sign and date it. A written deed avoids later doubt.
- Know where it goes. The gift returns to the estate and passes to whoever is next in line under the will or intestacy rules. You have no control over that.
- Tell the executor or administrator. Give them the signed disclaimer so the estate is distributed correctly.
A disclaimer within two years of death is read back for Inheritance Tax to the next beneficiary (HMRC, IHTM35161, as at August 2026, subject to change). See how much you can inherit tax free.
Can you choose who gets it instead?
Yes, but only with a deed of variation, not a disclaimer. It redirects the gift to a person you name, for example your own children, and must be in writing and signed within two years of the death. If it includes an election under section 142 of the Inheritance Tax Act 1984 (and section 62 TCGA 1992 for Capital Gains Tax), HMRC reads the gift back as coming from the deceased, not from you (HMRC, IHTM35002, as at August 2026, subject to change). That keeps it out of your own estate and off the seven-year clock. It can generally be varied only once, and every adult who loses out must agree.
What people get wrong about refusing an inheritance
Three mistakes surface only after a refusal is done, when it is hard to undo. People assume refusing shelters means-tested benefits, that it shrinks the deceased's own tax bill, or that accepting then giving the money away achieves the same result. Each is wrong, and each can leave you worse off than taking advice first.
Refusing to keep benefits or limit a care bill can backfire. If you disclaim or redirect mainly to stay under the savings limits, the Department for Work and Pensions can treat you as still holding the money as "notional capital" and assess the benefit as if you never refused. A local authority applies the same deliberate deprivation of capital test, so refusing is not a reliable way of limiting the impact of care fees. In England the upper capital limit for local authority care funding is £23,250, and most means-tested benefits stop once savings pass £16,000 (gov.uk, as at August 2026, subject to change). Our guide to care home fees covers the means test.
Disclaiming does not cut the deceased person's tax bill. Inheritance Tax on the estate is worked out on death, before anyone accepts or refuses. Refusing your share does not shrink it; a disclaimer or variation only changes who is treated as receiving the gift for future tax, which matters for your estate, not the one you inherit from. See how it works.
Accepting then giving it away is not the same thing. If you take the inheritance and later hand it on, that is an ordinary gift from you, and it only leaves your estate if you survive seven years. A deed of variation avoids that clock. Our note on gifting money tax free explains the seven-year rule.