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. Disclaimer Trust

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

    The collection of preparation tasks that serve to manage an individual's ...
  3. Estate Tax

    A tax levied on an heir's inherited portion of an estate if the ...
  4. Beneficial Owner

    1. A person who enjoys the benefits of ownership even though ...
  5. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  6. Gift Tax

    A federal tax applied to an individual giving anything of value ...
Related Articles
  1. Taxes

    Changes In Tax Legislation And Regulation

  2. Personal Finance

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

  3. Retirement

    Disclaiming Inherited Plan Assets

  4. Retirement

    Refusing An Inheritance

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center