CAN I REFUSE AN INHERITANCE?
CAN I REFUSE AN INHERITANCE?
The law does not force any person to accept an inheritance. Therefore, a beneficiary of an estate can refuse same. If you refuse an inheritance, you are said to have disclaimed same.
The disclaimer must occur before the beneficiary accepts the benefit. Often times, once the beneficiary becomes aware that they have received an inheritance, they contact the solicitor acting for the deceased’s estate to advise that they do not wish to accept same. The beneficiary is then asked by the solicitor to sign a legal document stating same. This document is known as a Deed of Disclaimer.
Where a beneficiary receives more than one benefit, they may accept one and disclaim the other. However, they may not disclaim part of a particular benefit.
What happens to the benefit I disclaim?
The disclaimed benefit passes to the person next entitled whether under a Will or if there is no valid Will, under the Rules of Intestacy.
Would I pay tax on the disclaimed benefit?
Capital Acquisitions Tax (CAT) applies to inheritances and gifts. However, where the beneficiary disclaims the benefit, they do not pay CAT on same.
Bridget Kelechi-Njoku, Solicitor.
