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Can I Sign Over My Inheritance to Someone Else in Texas? A Complete Guide

When someone passes away and you’re named in their will or become an heir through intestate succession, you might ask a surprising question:
“Can I sign over my inheritance to someone else?”

In Texas, yes, you generally can—but it’s not as simple as just handing over a check or writing a letter. Whether you’re motivated by generosity, conflict avoidance, tax strategy, or debt protection, legally transferring or disclaiming your inheritance comes with serious legal and tax implications.

At The Lange Firm in Sugar Land, Texas, we guide heirs, beneficiaries, and executors through these types of inheritance questions every day. In this blog, we’ll break down:

• Whether you can sign over an inheritance
  
  
• How to legally disclaim or assign it
  
  
• Tax consequences
  
  
• Estate planning considerations
  
  
• How to protect yourself from liability
  
  
• When it’s best to consult a Texas probate attorney
  
  

Let’s take a closer look at your options and what Texas law allows.

Table of Contents

• What Does It Mean to Sign Over an Inheritance?
  
  
• Why Would Someone Sign Over an Inheritance?
  
  
• Can I Legally Sign Over My Inheritance in Texas?
  
  
• Option 1: Disclaiming an Inheritance
  
  
• Option 2: Assigning or Gifting Your Inheritance
  
  
• Tax Implications of Disclaiming or Assigning
  
  
• Timing and Procedural Requirements
  
  
• Can You Sign Over an Inheritance While in Debt or Bankruptcy?
  
  
• What Happens If You Don’t Want Your Inheritance?
  
  
• How The Lange Firm Can Help
  
  
• Final Thoughts
  
  
• Related Blogs for Further Reading
  
  

What Does It Mean to Sign Over an Inheritance?

To “sign over” an inheritance typically refers to either:

1. Disclaiming it: Legally refusing to accept it, so it passes to the next rightful heir
   
   
2. Assigning it: Accepting the inheritance and then transferring it to another party (a person, trust, or organization)
   
   

Both options are available in Texas, but each has different legal steps, timelines, and financial consequences.

Why Would Someone Sign Over an Inheritance?

There are several reasons why someone might want to refuse or redirect their inheritance:

• Generosity: You want a sibling, child, or someone in greater need to receive it
  
  
• Taxes: You want to reduce your taxable estate or income
  
  
• Creditor protection: You’re facing bankruptcy or lawsuits and don’t want the inheritance exposed
  
  
• Family dynamics: You want to avoid conflict or drama
  
  
• Government benefits: Accepting the inheritance could interfere with Medicaid or SSI eligibility
  
  
• Estate planning strategy: You’d rather your inheritance go into a trust or pass to a different generation
  
  

Understanding your motivation helps determine which legal approach—disclaimer or assignment—is right for you.

Can I Legally Sign Over My Inheritance in Texas?

Yes, Texas law permits:

• Qualified disclaimers under the Texas Estates Code
  
  
• Assignments or transfers after you accept the inheritance
  
  

But the timing, intent, and documentation are crucial. Mistakes can lead to:

• Tax consequences
  
  
• Legal challenges
  
  
• Creditor claims
  
  
• Probate delays
  
  

This is where The Lange Firm can help you navigate the safest route forward.

Option 1: Disclaiming an Inheritance

Disclaiming means you refuse to accept the inheritance entirely, as if you had predeceased the decedent.

✅ Requirements for a Valid Disclaimer:

• Must be in writing
  
  
• Must be filed within 9 months of the decedent’s date of death
  
  
• Must be irrevocable
  
  
• Must be signed before accepting any benefits
  
  
• Must be filed with the probate court and served to the estate’s executor or administrator
  
  

You cannot partially disclaim—you must disclaim all or nothing for a specific asset.

✅ What Happens After You Disclaim?

• The inheritance passes to the next person in line under the will or intestate law
  
  
• You do not get to choose who receives it
  
  
• You have no control or influence once you disclaim
  
  

✅ Disclaimers are often used for tax planning or to pass an inheritance to children or grandchildren without the original heir taking possession.

Option 2: Assigning or Gifting Your Inheritance

If you’ve already accepted the inheritance, or you want control over who receives it, you may assign it or gift it.

✅ How to Assign Your Inheritance:

• Must be done in writing (e.g., an assignment of interest or gift deed)
  
  
• You may need to get court approval in some probate situations
  
  
• The transfer must comply with Texas contract and gift laws
  
  

⚠️ Potential Risks:

• You may owe gift tax if the value exceeds federal exclusion limits ($18,000 in 2024)
  
  
• You could be liable for capital gains taxes later
  
  
• Creditors may claim a fraudulent transfer if you’re trying to shield assets
  
  

If you’re assigning your interest to avoid debt or support a Medicaid plan, speak with The Lange Firm to avoid legal pitfalls.

Tax Implications of Disclaiming or Assigning

🔹 Disclaiming:

• If done correctly under IRS guidelines, it is not taxable
  
  
• The estate passes to the next beneficiary without increasing your taxable estate
  
  

🔹 Assigning or Gifting:

• May be treated as a taxable gift under federal law
  
  
• You may need to file IRS Form 709
  
  
• You could owe taxes or reduce your lifetime gift/estate tax exemption
  
  

Proper planning with an attorney and CPA is crucial here.

Timing and Procedural Requirements

• You must disclaim before accepting any portion of the inheritance
  
  
• You must file within 9 months of the decedent’s death to meet IRS standards
  
  
• Assignments can be done any time after acceptance, but early action simplifies estate administration
  
  

Delay can cost you options. If you’re unsure, contact The Lange Firm early in the probate process.

Can You Sign Over an Inheritance While in Debt or Bankruptcy?

Yes—but proceed with caution.

In bankruptcy, you must report expected inheritances received within 180 days of filing. The bankruptcy trustee can seize those funds to pay your creditors.

Disclaiming an inheritance after filing bankruptcy could be considered a fraudulent transfer, especially if your goal is to keep the money out of creditors’ hands.

📞 Speak to a probate and bankruptcy attorney immediately—The Lange Firm works with financial advisors to protect your legal standing.

What Happens If You Don’t Want Your Inheritance?

If you do nothing, and don’t disclaim, the inheritance becomes yours by default. This can create issues with:

• Estate taxes
  
  
• Creditor exposure
  
  
• Medicaid disqualification
  
  
• Probate delays
  
  

Filing a disclaimer or assignment proactively gives you control over the outcome.

How The Lange Firm Can Help

At The Lange Firm, we help Texans:

• Legally disclaim or assign inheritances
  
  
• Navigate IRS and probate requirements
  
  
• Avoid creditor or tax issues
  
  
• Draft trust and estate plans that minimize complications
  
  
• Represent clients in contested estates or high-conflict families
  
  

Whether you’re planning ahead or already in probate, our team offers clear, compassionate guidance at every step.

Final Thoughts

So, can you sign over your inheritance to someone else in Texas?
✅ Yes, through disclaimer or assignment—but only with careful planning.

Whether you want to reduce tax exposure, help a loved one, or avoid family conflict, The Lange Firm is here to ensure your inheritance is handled legally and strategically.

📞 Contact us today for a free consultation on your inheritance rights and options.