Disclaiming Responsibility Under a Power of Attorney or a Will: What You Need to Know

Disclaiming Your Role as an Attorney

Appointing an attorney under a Power of Attorney confers significant power and responsibility on the part of attorneys in their role to help manage the affairs of the donor (the person who appoints the trusted persons to manage their affairs).

Why you might disclaim:

• Insufficient time or capability to effectively fulfil the responsibilities. 
• The donor's circumstances became more complicated than originally anticipated. 
• Personal circumstances that prevent proper execution of duties. 

The Process: Whatever your reasons for disclaiming, this can be done by completing specific forms and procedures, which may include informing the Office of the Public Guardian of your intention to disclaim. A lawyer can help guide you through the process and advise on any potential risks to the donor’s position arising from a disclaimer. The level of risk to the donor will depend on the provisions and conditions stipulated in the Power of Attorney. You may wish to discuss this with a legal professional before making any decisions that could adversely affect the donor’s best interests.

Disclaiming an Inheritance as a Beneficiary

As a beneficiary, you are not obligated to accept your inheritance under a Will. 

Common reasons to disclaim:

• To mitigate Inheritance Tax liability. 
• To allow other beneficiaries to benefit from your entitlement. 

Important Conditions: To disclaim your inheritance, you must meet specific requirements: 

• You cannot have received any benefit from the gift already. 
• You must give up your right to the whole of the gift (partial disclaimers are not permitted). 
• You cannot choose who receives your gift.  This will be determined by the Will. 
• After disclaiming, you will be treated under the Will as if you had predeceased the testator (the person who made the Will). 

Alternative Option: Deed of Variation - If you want to choose who shall benefit from your inheritance, or if you wish to give up only part of the gift whilst retaining some benefit, then you can ‘vary’ the terms of a Will with a Deed of Variation.

Critical Considerations: When considering a disclaimer or variation, be mindful of: 

• Strict legal requirements and timeframes.
• Legal and financial implications for you and other beneficiaries. 
• The complexity of determining who will ultimately benefit under the Will. 

How We Can Help

Whether you are considering stepping down as an attorney under a Power of Attorney or disclaiming your entitlement as a beneficiary under a Will, these are important legal decisions with potential long-term implications for all parties involved. Seeking professional legal advice is recommended to fully understand the consequences, particularly in the context of inheritance, where complex tax and succession issues may arise.

At Blanchards Bailey, our experienced Private Client Services team provides tailored legal guidance to help you make informed decisions and complete all necessary formalities in a compliant and timely manner. 

Contact us: 

• Telephone:  01258 459361
• Email: blandford@blanchardsbailey.co.uk

You can also visit the Wills, Probate and Estate Planning page on our website for more information.