[Wally_Kalbacken]

You also cannot be insolvent when you execute the document, and states vary on how far back they look for insolvency prior to the disclaimer.

[tired&retired]

Might be true in your state, but not true in most states.

A disclaimer of inheritance can be used to prevent creditors from gettingthe disclaimed assets as they are never in the bankruptcy.

[tired&retired]

Alternatively, a testator might setup a testamentary trust that contains a spendthrift trust provision thereby precluding any such inheritance from ever coming into a bankruptcy estate.

[tired&retired]

You can be insolvent, as long as you have not filed bankruptcy as the bankruptcy trustee is the person to make or reject the disclaimer.

You could also disclaim any possible inheritance before the person dies. Once he dies, you can’t retroactively change the will or disclaim the inheritance.

Bankruptcy And Inheritance

Section 541(a)(5) of the Bankruptcy Code provides that property of the bankruptcy estate includes:

“Any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date –