Deed of Family Arrangement

[legal33]

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,

 

[Gordon Gekko]

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.