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).

When you disclaim an inheritance, that benefit is returned to the estate of the deceased. You may disclaim specific bequests under a will and accept others. You can also disclaim a life interest or a limited interest, and this interest returns to the estate.

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 what is left over in an estate after payment of gifts and administrative expenses.

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 will have to pay CAT.

You can give up a benefit in return for a payment. The payment then becomes the gift or inheritance. You must pay CAT on that payment.