Chapter 15: Post-death changes

Question 1

What is a disclaimer?

Answer 1

When a beneficiary disclaims their inheritance orally or in writing (unless they have accepted a benefit from the gift)

Question 2

If a specific legatee disclaims their legacy, what will happen to the legacy?

Answer 2

The legacy will fall into the residue

Question 3

If the last or sole beneficiary of the residue disclaims, what will happen to the residue?

Answer 3

The residue passes through intestacy

Question 4

Does the disclaimer of a gift under a will prevent a person from receiving property under the intestacy rules?

Answer 4

No

Question 5

Can a person disclaim their inheritance orally or in writing?

Answer 5

A beneficiary can disclaim orally or in writing. However, for IHT and CGT purposes, it must be in writing

Question 6

What is a variation?

Answer 6

Allows a beneficiary to decide who receives their inheritance

Question 7

What are the requirements of a variation to be effective for IHT and CGT?

Answer 7

1. The variation must be in writing
2. Made within two years of death
3. Not made for monetary consideration

If above satisfied, treated as deceased left property to new beneficiary

Question 8

What happens if the requirements for a variation is not met?

Answer 8

The gift is treated as a transfer for value for IHT and a deemed disposal for CGT by the original beneficiary

Question 9

Is a partial variation possible?

Answer 9

Yes

Question 10

Can a variation be made even if the original beneficiary has accepted the benefit?

Answer 10

Yes