Q&As
In a life interest trust where the life tenant has already disclaimed their life interest, is it possible for the life tenant and remainderman to enter into a deed of variation recording the fact that the life tenant is to take absolutely?
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:
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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)
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the disclaimed benefit falls back into residue and is distributed in accordance with the devolution of the estate
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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
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