Disclaimer by the life tenant

This Q&A envisages that the life tenant has already validly disclaimed their life interest. The consequences of a disclaimer are as follows:

1. •

   the disclaimer must be absolute and the disclaiming beneficiary cannot retain any benefit. One gift can be disclaimed (eg a legacy) and another retained (eg a share in residue)

2. •

   the disclaimed benefit falls back into residue and is distributed in accordance with the devolution of the estate

3. •

   the disclaimer can subsequently be retracted provided no person has altered their position in reliance on the disclaimer

Generally, see Practice Note: Failure of gifts—disclaimer and acceptance.

Deeds of variation

Unlike a disclaimer, a deed of variation can redirect the beneficial interests under the trust. This is usually done for tax purposes after death, see Practice Note: Variation of Will or intestacy after death. The variation can benefit any person, whether or not they are a beneficiary.

Taxation requirements

The provisions in section 142