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Disclaimers
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A disclaimer is a refusal to accept a lifetime or testamentary
gift because the inherited asset could cause an IHT/CGT problem
for the recipient.
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A person need not accept a gift, and such a situation is often
linked to a variation as covered briefly above. The main difference
is a disclaimer made unilaterally by the intended recipient and
does not need the agreement of other beneficiaries.
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Section 142 mentioned above applies to disclaimers also, so a
'disclaimed' gift or legacy is deemed to come from the deceased.
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The disclaimer, to have effect,
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Must be written within two years, and
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Must be before the recipient has received or taken any benefit
from the legacy.
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For a variation to a will to be successful, therefore, although
two years is the timing in the Act, in practice it will be necessary
to move faster to have everyone's agreement to the variation before
they make use of their legacies.
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Where a disclaimer is made, the asset disclaimed is treated as
never having been conferred for IHT and CGT purposes.
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