Thinking of refusing to be IRA beneficiary.

My nephew passed and left me sole beneficiary to his IRA when he originally told me he was leaving it to me, his niece and nephew. My brother has incurred a small amount of expense (less than 20K) and wants me to sign the money over to him to pay bills and then he will set up accounts for the kids. I am concerned as to my financial liability. My nephews desire was for the money to go only to the kids and not even me in the end but he didn't get it changed. Up front I will owe $14,500 and lose my tax credit for my sons financial aid because of this. I am considering forfeiting the IRA. Where does it go from there? I feel bad for my great niece and nephew because I fear they will lose their money but family squabbling is getting to me. I have until 12/31/2010 to claim it.