niece doesn't want 100% inheritance

pathway33

My friends unmarried uncle who is quite elderly has 4 nephews and nieces. He has left a 50 acre farm worth €500,000 to one niece. This niece doesn't want all the inheritance to herself. She believes they should get an equal share each and has asked her uncle to change his will to reflect this but he doesn't like the other three and so is refusing to budge. She has explained to him that double tax will have to be paid on his death. Firstly inheritance tax on the whole lot and secondly gift tax when she transfers equal shares to her 3 cousins. What can be done? Can she ask them to contest the will before it is executed in her benefit so she doesn't have to pay all the inheritance tax on money she isn't even going to keep?

Jo King

Any competent Probate solicitor should be able to resolve this with a very short consultation They should all chip in a few quid and go and see such a solicitor.

partyguinness

pathway33 wrote: »

My friends unmarried uncle who is quite elderly has 4 nephews and nieces. He has left a 50 acre farm worth €500,000 to one niece. This niece doesn't want all the inheritance to herself. She believes they should get an equal share each and has asked her uncle to change his will to reflect this but he doesn't like the other three and so is refusing to budge. She has explained to him that double tax will have to be paid on his death. Firstly inheritance tax on the whole lot and secondly gift tax when she transfers equal shares to her 3 cousins. What can be done? Can she ask them to contest the will before it is executed in her benefit so she doesn't have to pay all the inheritance tax on money she isn't even going to keep?

She would be hit with a whopper of a tax bill. If he leaves the farm to her she can disclaim..nobody is forced to take an inheritance then it goes back and is divided amongest however is legally entitled. If she wants to disclaim in favour of other relations..this cannot be done..instead she takes the inheritance and enters into what is called a Deed of Family Arrangement...but Stamp Duty also kicks in here.

As for contesting the will simply because relations dont like provisions is a non-runner..as long as he is mentally fit and able and nobody has been disinherited (ie wife and children)..no chance.

She can simply refuse to take the inheritance. BUt of course its more complex but that is a brief summary

I should add..it is not possible to take part of an inheritance..its all or nothing.

pathway33

partyguinness wrote: »

she can disclaim..nobody is forced to take an inheritance then it goes back and is divided amongest however is legally entitled. If she wants to disclaim in favour of other relations..this cannot be done..instead she takes the inheritance and enters into what is called a Deed of Family Arrangement

he has an elderly sister who he doesn't want to give anything to as well. So if the niece disclaimed, the elderly sister of the uncle would automatically get a share along with the 4 nephews and nieces?

CantGetNoSleep

She should just learn to be grateful (and think if herself a bit) and keep it all to herself

dats_right

This is a potential minefield. Having said that, there is a possible CAT tax relief whichmay apply in this instance i.e. agricultural relief which could amount to a 90% reduction in tax payable. Anyway, this sort of advice is not best dealt with on forums such as this, the person concerned should talk to a solicitor sooner rather than later and if necessary also seek specialist tax advice and they should not do anything until they have spoken to a solicitor.

themadchef

This is probably going to sound stupid and overly simplistic but, why can't she (on inheritance) sell the property and just give cash to whoever she feels deserves it? If you give me €40.000 in the morning as a present,do i have to pay tax on it? in the first place Why do i have to tell the government. It was a present from one living person to another.

Ignorance is bliss i think in my case

partyguinness

To be honest I think this thread should be closed..there are way too many issues here.

Only a suitable professional advisor can answer these matters. I know because I am a specialised tax lawyer.

Tom Young

Thread Closed. I note that the above poster/s in some cases actually recommend breaching the law. If that happens again, I'll ban the user/s completely. As it was the OP's post is not really in line with the forum charter - as advice really was sought.

Nothing in the above thread should be relied upon. Contact a solicitor.

Tom