disclaiming an inheritance

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panathon

Guest
As my previous question wasn't answered maybe I was too long winded, basically if you get left part of a property in a will, how simple is it to disclaim your inheritance - do you have to sign your part over to another person or can you simply instruct your solicitor that you want to disclaim your inheritance and so be it - no taxes, nothing to deal with? How long would the process of disclaiming normally take and if it so far has taken 3 years as it has what could be stalling the process? Any advice much appreciated.
 
Anybody can refuse a legacy. All you have to do is write to the executor to say so. Any legacy refused then becomes part of the residue of the estate, and is dealt with as provided for in the will. If it is a share of the residue that is refused, then it passes to the other residual legatees.

Signing your share over to another person is another thing, and can be more complicated.
 
panathon said:
As my previous question wasn't answered maybe I was too long winded, basically if you get left part of a property in a will, how simple is it to disclaim your inheritance - do you have to sign your part over to another person or can you simply instruct your solicitor that you want to disclaim your inheritance and so be it - no taxes, nothing to deal with? How long would the process of disclaiming normally take and if it so far has taken 3 years as it has what could be stalling the process? Any advice much appreciated.
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Comes under Section 8 of Cat acts. I think you simple tell solictor your disclaiming under section 8. You share will go back in pot so to speak and is them redistributed.

I dont think you are allowed to advise how gets you share- i am open to correction.

signing it over to another person may have tax implications-get legal advise
 
Thanks for the answer lads - one last question, if my friend simply disclaims his inheritance under section 8 - how long would this process normally take?
 
If you disclaim that's it - end of story. Takes effect as soon as you disclaim.
 
You cant disclaim in favour of another so to speak. It would be looked as an inheritance to you and then a gift to the next person - ie. 2 dispositions instead of one, and would be taxed accordingly.
 
In relation to disclaiming the inheritance, I am fairly certain that in this case, if you were to disclaim in a general sense then it is put back into the residue of the estate and then re distributed back to the other beneficiaries. If you disclaim to a certain person, you are deemed to have received an inheritance and taxed accordingly and also deemed to have gifted to the person in which to disclaim to and therefore give them a high threshold.

Should you disclaim in general and it is re distributed, it allows the other beneficiaries to be deemed to have obtained the inheritance from the deceased and therefore get the group threshold based on that relationship. So if from a parent you will reduce your group A threshold. Should it have been from another beneficiary who is not a parent (keeping it simple) then it would be a gift from a group B or Group C relationship and reduce that threshold or indeed if previous gifts or inheritances had been received you may not be able to reduce the CAT liability.

I hope this helps.
 
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