Disclaim

AAA

DEFINITION of 'Disclaim'

To renounce an interest or obligation by way of a legal instrument - usually a written disclaimer, or a disclaiming trust. Property may be disclaimed for several reasons: because it is unwanted, because it carries heavy liabilities, because of tax reasons, or because the intended beneficiary wants to pass the property to another beneficiary. Liabilities, obligations, beneficial ownership, or rights may also be disclaimed.

INVESTOPEDIA EXPLAINS 'Disclaim'

1. When analyzing a company's proxy statement, it is common to read that a member of an executive's family owns a number of shares, but the executive disclaims beneficial ownership in the stock.

2. In succession planning, a beneficiary may disclaim an inheritance, thus passing the inherited property to the contingent beneficiary and avoiding inheritance taxes, as well as any liabilities that may come with the property.

RELATED TERMS
  1. Inheritance

    All or part of a person's estate/assets that is given to an heir ...
  2. Succession

    The action of one party, person or product being replaced by ...
  3. Inheritance Tax

    In some states in the U.S. (and in the United Kingdom), a tax ...
  4. Qualified Disclaimer

    A refusal to accept property that meets with provisions set forth ...
  5. Disclaimer Trust

    A trust that has embedded provisions (usually contained in a ...
  6. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
Related Articles
  1. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

  2. Want To Know What Disclosures Mean ... ...
    Personal Finance

    Want To Know What Disclosures Mean ... ...

  3. Disclaiming Inherited Plan Assets
    Retirement

    Disclaiming Inherited Plan Assets

  4. Refusing An Inheritance
    Retirement

    Refusing An Inheritance

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center