A member asked almost 8 years ago

Disclaim inheritance

My brother is entitled to 1/3 of my mother's will (suburban house only) along with me and my sister. He has had some business dealings in the past (no idea what they involved) and he is concerned that his ex-business colleagues can "go after" his share of the entitlement. If he refuses to accept his share of the inheritance, can the ex-business colleagues challenge his disclaimer and force him to accept it, or can they claim against the estate directly? We (my sister and I) would hold his share aside from our share and find some way later of passing it on to him.

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. We have assumed that the term “go after” means your brother’s former business partners would seek money from your brother. This may be because he owes them money. For example, he may have borrowed money from them to start or run the business, and has not repaid all or part of the loan. It is important to understand the legal basis of the former business partners’ claim and the strength of that claim. This will help your brother understand the level of risk he faces and the likelihood that he will face legal action to recover the money.

If a person successfully sues another person in court for the recovery of a debt, a court will typically order that the borrower pay the lender money. If the borrower does not comply with the court order, the lender may commence another proceeding in court (called enforcement proceedings) to determine the financial status of the borrower and whether proactive measures can be taken to obtain the money (e.g. redirecting part of the borrower’s wages to the lender).

Your brother’s inheritance under your mother’s will is relevant if his former business partners successfully sue him for the debt (or another legal claim they may have against him), and enforcement proceedings are subsequently commenced to determine his financial status. In this situation, he would need to disclose his financial affairs, including his recent inheritance.

It is not possible for your brother’s former business partners to claim directly from your mother’s estate. In Queensland, a ‘family provision application’ entitles someone who is not named in a will to apply for a share in the deceased person’s estate. This application can only be made by the deceased person’s spouse, child or financial dependent. If your brother’s former business partners do not fall into one of these three categories, they cannot claim directly from your mother’s estate.

Your brother has the right to disclaim his share of your mother’s estate if he wants to. He and the executor of the estate would sign a formal legal document confirming he disclaims his interest in the estate and does not wish to exercise his rights to receive a share in the estate. Your brother’s former business partners would not be able to challenge his disclaimer.

Suggested way forward

Your brother would benefit from speaking to a lawyer about the potential legal claim against him by his former business partners, and the best course of action to address it. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered almost 8 years ago   Legal disclaimer

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