Completing your gift or inheritance tax return (IT38)

What is a disclaimer of benefit?

If you receive a gift or inheritance and you decide not to accept it, then you need to 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 the benefit.

When you disclaim an inheritance, that benefit falls into the residue of an estate.

If a residuary legatee disclaims, the residue is distributed as if there was an intestacy in respect of the residue.

You may disclaim specific bequests under a will and accept others.

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

If you have inherited an interest in the residue of an estate you cannot give up parts of the residue and accept other parts. Residue being the portion of a deceased's estate that remains after the payment of all debts, administrative expenses and bequests.

When you disclaim a benefit you cannot specify what is to happen to that benefit. If you pass your benefit to another person then 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 gift or inheritance. You may have to pay CAT on that payment.