Many married couples structure their estate plan to leave all of his or her assets to the surviving spouse in order to take advantage of the unlimited marital deduction. This move will reduce the size of the deceased estate and eliminate immediate estate tax. However, this same move could mean that the decedent missed out on using his or her exemption equilivent ($3.5 million of 2009). The surviving spouse will also be subject to estate tax on his or her death on the value of assets remaining from the entire estate. If the surviving spouse gifts assets received from the inheritance to others, he or she will be subject to the gift tax rules.

When a surviving spouse may not need the inherited money to support his or her lifestyle, they may want to consider filing a qualified disclaimer. For tax purposes, filing a disclaimer on assets is treated as though the person never owned them.

There are a few rules that you should be aware of when making a qualified disclaimer.

If a person does not follow these requirements, the property in question will be considered a personal asset that he or she has given as a taxable gift to the next beneficiary in line.

According to the IRS, the person disclaiming the asset must meet the following requirements to use a disclaimer:

• Make the disclaimer in writing

• Disclaim the asset within nine months of the death of the assets' original owner (in the case of a minor beneficiary wishing to disclaim, the disclaimer cannot take place until after the minor reaches the age of majority)

• The person disclaiming cannot have benefited from the proceeds of the disclaimed property

• The person disclaiming cannot have the assets indirectly pass to him or her

Keep in mind that the disclaimer is irrevocable; the person who disclaims the property can't come back later, after a failed business or stock market slump, for example, and reclaim those assets.

The person disclaiming the assets does not get to choose who is next in line to receive the disclaimed property. Instead, the assets will pass to the contingent beneficiary as if the first beneficiary had died.

In the case of an intestate death, state law will determine the next beneficiary.