Completing your gift or inheritance tax return (IT38)

What is a disclaimer of a benefit?

If you receive an inheritance and you decide not to accept it, then you may disclaim the benefit. If you disclaim you do not have to pay Capital Acquisitions Tax (CAT). The benefit must be disclaimed before you have accepted or taken possession of it.

If you disclaim a bequest under a will, that property falls into the residue of the estate. You may disclaim specific bequests under a will and accept others.

If a residuary legatee disclaims, the residue is distributed under intestacy rules. If you inherit an interest in the residue of an estate, you cannot partly disclaim.

The residue is the part of a deceased's estate that remains after the payment of all debts, administrative expenses and bequests.

If a life interest or other limited interest is disclaimed, the remainder interest is accelerated. This means the remainderman takes an absolute interest in the property.

If joint tenants received a benefit, one of two or more joint tenants cannot disclaim. In order to be a disclaimer all the joint tenants must disclaim.

When you disclaim a benefit you cannot specify what is to happen to that benefit. If you pass your benefit to another person this is not a disclaimer and both you and that person may have to pay CAT.

You can give up a benefit in return for a payment. The payment then becomes the inheritance. You may have to pay CAT on that payment.