If I refuse an inheritance, can I name a replacement beneficiary?

Another interesting reader question. And my answer is both yes and no, depending on what your goal is.

If you refuse ("waive") your inheritance,  you will sign a Waiver document that basically says "no thanks, I don't want it". That is the full extent of your involvement. The inheritance that you don't take will be dealt with by the executor according to the will. You will have no control over what happens to it because you will have taken yourself out of the picture.

If your goal is to get your inheritance into the hands of another person or a charity, waiving your inheritance is probably not the way to go.

There are a couple of options open to you. One is to sign an "Assignment and Direction to Pay" document and give it to the executor. This means that you are acknowledging and accepting the inheritance but asking that they write the cheque to someone other than you. Be careful that you are not asking that it be paid to someone who can't accept it, such as a minor, or a disabled person who has a trustee. In those cases you must direct that it be paid to a legal representative (i.e. a trustee) on behalf of the minor or disabled person.

The other option is to accept the inheritance and receive the money, then give some or all of it to whoever you want.

With both of these options you will have to go through the usual steps required of a beneficiary, such as signing a Release when the estate is done.