Can you pass a inheritance to someone else

alibab

This is not legal advice just curious. If you inherit part of a estate but do not want it can you then pass your share onto a nominated person. I know you can renounce a inheritance and it goes back to the estate etc . Just wondering if instead of renouncing it can you pass it on to a nominated person.

It's sometimes not beneficial from a tax point of view for one person to accept but that person might like to see another benefit. Thanks

fishy_fishy

alibab wrote: »

This is not legal advice just curious. If you inherit part of a estate but do not want it can you then pass your share onto a nominated person. I know you can renounce a inheritance and it goes back to the estate etc . Just wondering if instead of renouncing it can you pass it on to a nominated person.

It's sometimes not beneficial from a tax point of view for one person to accept but that person might like to see another benefit. Thanks

Nope. Dealt with under S12 CATCA 2003. If you disclaim in favour of a nominated person it's treated as acquisition followed by disposal so there will be two CAT charges.

To avoid CAT you have to fully disclaim and it goes into the residue.

coylemj

fishy_fishy wrote: »

Nope. Dealt with under S12 CATCA 2003. If you disclaim in favour of a nominated person it's treated as acquisition followed by disposal so there will be two CAT charges.

To avoid CAT you have to fully disclaim and it goes into the residue.

+1 exactly as stated above and covered on the Revenue website .....

Disclaimers - 10 Points to Remember

1. Where a person disclaims a benefit they no longer have a liability to CAT in respect of that disclaimed benefit.
2. A disclaimer is not itself a disposition for CAT purposes.
3. A person can disclaim for consideration. Any consideration is a benefit moving from the original disponer to the person disclaiming (i.e. a substituted gift or inheritance).
   
4. A disclaimer in favour of a named person is considered as an acquisition and a subsequent disposal and therefore there is a double charge to CAT.
5. A disclaimed legacy falls into residue.
6. If a residuary legatee disclaims, the residue is distributed as if there was an intestacy as regards the residue.
7. A share of the residue may be disclaimed. That share is then distributed as on intestacy. A person who therefore inherits a half-share of the residue can disclaim that half-share.
8. A person cannot partially disclaim the residue or partially disclaim a share of the residue.
9. A person may however disclaim one of several legacies, either pecuniary or specific.
10. If a life interest or other limited interest is disclaimed the remainder interest falls in immediately.

http://www.revenue.ie/en/tax/cat/guide/disclaimer.html