Post-death charges Flashcards
ο»ΏWhat is a disclaimer?
A legal refusal to accept an inheritance. Must be in writing for IHT and CGT purposes.
Can a disclaimer be oral?
Yes, but for IHT and CGT purposes, it must be in writing.
What happens if a specific legatee disclaims?
The specific legacy falls into the residue.
What happens if the last or sole beneficiary of the residue disclaims?
The residue passes through intestacy.
Does a disclaimer prevent receiving property under intestacy rules?
No, a disclaimer does not prevent the person from receiving property under intestacy rules.
What is a variation?
A legal alteration of how an inheritance is distributed, made within 2 years of death, and not for monetary consideration.
What are the conditions for a valid variation?
Must be in writing, made within 2 years of death, and not made for monetary consideration.
What happens if a variation is valid?
Treated as if the deceased had left the property to the new beneficiary.
What happens if a variation is not valid?
Treated as a transfer of value for IHT and deemed disposal for CGT by the original beneficiary.
Can a variation be partial?
Yes, a variation can be partial, allowing a beneficiary to change part of their inheritance.
How does a disclaimer affect IHT and CGT?
Typically does not affect IHT and CGT if valid.
How does a variation affect IHT and CGT?
Valid variation is treated as though the deceased made the distribution. Invalid variation is treated as a transfer of value.
