Deed of Family Arrangement

Discussion in 'Wills, inheritances and gifts' started by legal33, 12 Jan 2019 at 6:12 PM.

  1. legal33

    legal33 Frequent Poster

    Posts:
    92
    Hi,

    Our uncle died last year and divided his estate between his nephews and nieces. One of his nieces has already exceeded her category B CAT allowance of €32,500. She wants to do a Deed of Family Arrangement whereby all the beneficiaries agree to amend the terms of the Will so that her father inherits her share. As each beneficiary will receive about €20,000 he as a brother of the deceased would pay no CAT on this.

    We don't mind signing this form. We just think she has been misinformed and Revenue will view it as a disclaimer in favour of a particular individual and therefore the original beneficiary is taxed as if she had received the benefit.

    Any ideas?

    Many thanks,
     
  2. Gordon Gekko

    Gordon Gekko Frequent Poster

    Posts:
    3,301
    I think you’re correct.

    I have never seen this, but I wonder if the niece disclaimed the €20k, the other nieces and nephews did too, and then any surviving siblings did also, could they get the €20k to her father that way?

    He is the closest (or one of the closest) surviving relatives after all.

    But that’s just a top of the head thought from me with a beer in hand; I don’t know whether it has merit.