tax implications of disclaiming inheritance

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Portia

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Hi there. My 3 siblings and I have inherited from our parents equal shares in the family home, plus a sum of money. My siblings all live abroad and have all agreed that they would like me to buy them out of the family home at a price that would enable me to do it up properly and extend it - they are willing to take a somewhat reduced inheritance because they all value the possibility of having a base to stay in in our home town when they come home to visit. We are currently exploring the most tax efficient way of doing this.

Am I right in thinking that if I buy them out of the house at less than its market price, the Revenue will treat that as a sibling to sibling gift, and there will be a tax liability?

I am wondering if it would be more tax efficient for me to buy them out at the market price, and for each of them to disclaim their interest in the lump sum? Am I right in thinking that if they do this, their interests in the lump sum would revert back to the estate and then be inherited by the remaining beneficiary (me) as if it was inherited directly from our late parents?

Thanks in advance.
 
It would depend on the exact wording in the will - there are restrictions on disclaiming benefits

And yes, if you purchase their share at less than market price then this would be considered a gift from them to you. Siblings are allowed to gift € 32,500 to each other before CAT is due so it would depend on the value of the property and price paid.
 
Are you sure about Siblings gifting €32500. Is it only through inheritance that amount is allowed and so as they are still living the allowance would be €3000.
 
CAT is a gift and inheritance tax on lifetime gifts - there is no distinction between gifting and inheriting other than in the second case the disponer has passed away
 
Thanks for your replies. Am I right in thinking that the 32500 is the total amount that can be gifted to you by all your siblings - they cannot each give you 32,500 without giving rise to a tax liability?
 
Portia said:
Thanks for your replies. Am I right in thinking that the 32500 is the total amount that can be gifted to you by all your siblings - they cannot each give you 32,500 without giving rise to a tax liability?
Click to expand...

They can all gift you 32,500 each
 
Portia said:
Thanks for your replies. Am I right in thinking that the 32500 is the total amount that can be gifted to you by all your siblings - they cannot each give you 32,500 without giving rise to a tax liability?
Click to expand...
Correct
 
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