... to "decline" a bequest?

[FallenArchesBrokenDreams]

My father is dying.
He's got end stage dementia so really I lost him years ago so I've done my grieving.
His small estate is divided between myself and my 2 siblings equally.

Myself and Dh are comfortably off, the inheritance will make a small but not signifcant difference to our financial status.
However even a third of the small estate will be very useful to my youngest sister whois not well off at all. She has no debts but has no money spare for luxuries. She is very proud and has always refused offers of help unless they are very small and disguiysed as a birthday present.

Can I decline the bequest? and if so does the estate just get divided between sister 1 and sister 2 equally?
Are there tax implications for doing this (if it is even possible)
Obviously my father can change his will.

I feel she not only needs the money more, I feel she has earned it as she lived closest to Dad so did most of the "things" he needed

You can disclaim your inheritance which has the same effect as a deed of variation, but might be psychologically easier for your sister to accept (ie you are giving up your entitlement, not giving it to her directly). Do speak to your solicitor (try step.org if you don't have one already).

You can't do it until after your father has passed away, and I am sorry that he is so poorly.

Take legal/tax advice as it may have implications for all of you. If youngest is on benefits, then they may be stopped if she inherits a significant sum, so could be best to buy her something (pay off car or some mortgage, for example) and say that DF wanted it, and to consider it appreciation for all the extra stuff she did for him that restricted her earning potential (suspect she may recoil at the word 'payment').

Does S3 have any children you could make gifts to or set up trust funds for?

Apologies, I didn't realise there are 2 other siblings: you're quite right about the effect of refusing your gift (ie other sibling would also benefit). Good luck.

I have no children.
D2 and D3 both have one child , both are independent adults who DH and I have already gifted money to for house deposits.

We kinda take the attitude that we can't take it with us!

As long as affected parties agree, I think you can do this.

My dh and his brothers reinstated another brother who'd been cut out of the will because of his wife's e

...extravagant spending. But since she was now ex, they didn't see why he shouldn't get his share. Of course they all had to agree.
Recently I also passed on a legacy from my mother directly to dds, whose need was greater.

Yes, D3 does get some benefits. She is in council housing or whatever it's called these days. I don't want to make her worse off if she has to spend all the extra inheritance in finding somewhere else to live.

I guess I need to talk to her.

We don't do "talking"
We're British

How kind of you.

Sorry about your dad

Yes but...what if a few years down the line you have financial problems? Or your sister wins the lotto? Fortunes can change. If you have dc or they have dc, they may benefit more as it would provide house deposits etc.

x post re. house depposits

just a word of warning.
people do get very upset about wills, so while it is very kind of you to pass it to Daughter 3, will this make for bad feelign between you and Daughter 2?

Also, if you want her to get all of your share, then you need to accept it and pass it on, otherwise it will be split with Daughter 2.

What a lovely thought, and how kind you are Op. Hope it works out.

I doubt it would effect her housing but it would cut off her benefits which in turn would mean the inheritance is being spent instead of benefit money, which isn't necessarily a bad thing. DSis being in council housing doesn't always mean they are skint, your other sis might have less of a disposable income due to mortgage or what-have-you.

We have altered my Mums will, for similar reasons, the Deed that we needed, cost £300, this involved property, not tax.

Anything over £16k, or £6k (for IS) and it will affect benefits.

It would be best to accept it and then make decisions. If you've got similar savings to what's being handed over, then there won't be implications in the future, because as said, fortunes change.

Also there's lots of posts on here about people who've worked harder and made better decisions than their siblings, but get less from Parents, because of it.

We don't do "talking"
We're British

FallenArchesBrokenDreams

You can do something where all beneficiaries of the will sign something and agree to alter it.
It's a lovely thing you are doing. ((hugs))

Could you put the money in trust for your sister's child, to be accessed at the age of 18? That way your sister wouldn't have her pride hurt, she wouldn't have inheritance tax issues if applicable, and you'd have been able to follow through on your very kind wishes.

You can do a deed of variation. All beneficiaries of the Will must be in agreement and it must be done before any payments are paid out. It basically changes the Will.
I would recommend you take some advice but I think it is a lovely thing for you to want to do.

Thank you all.
I'm not really that lovely, to be honest D3 and I get on solely because we have to because of Dad. Once he's gone, we'll most probably have next to nothing to do with each other.
We're not close

If your father has dementia, he cannot change his will, nor can his will be changed on his behalf.

There is a provision for a Deed of Variation.

Whether it's to decline your 1/3 and for the remaining siblings to inherit 50/50 or whether you can specify whether your sister ends up with 2/3 and the remaining sibling ends up with 1/3, is up to a solicitor to sort out.

What a kind thing to do OP. Hats off to you.

Isnt it lovely to read something positive for a change.I have no idea about what you want to do but what a lovely woman you sound.

Maybe gift it to her child rather than your sister,then its a win win.

'm not really that lovely, to be honest D3 and I get on solely because we have to because of Dad. Honestly that makes you even more lovely.

D3 's child is an adult over 30 and most probably more financially secure than her mother.

I think it will most probably be more prudent to gift it to D3, D2 doesn't really need the extra money.
I'm not that worried about causing a family rift, we're only civil for father's sake!

Doubtless Dad will now rally, hang on for another year and the money will run out...

Are you talking about a substantial sum? Could you (with some discussion first) buy a house for her, say it's what your dad asked you to do???

So sorry about your Dad (I understand as I have a mum in the same position).

OP, this is such a lovely thing to do, what a wonderful sister you are.

I have a disabled son and have been advised that to have him substantial amounts of money may mean he is not able to access the help and suport he needs. We are therefore setting up a trust fund instead. You mentioned your sister is in ill health. Is it therefore likely that she may need help or support in future? If so I would just make sure that the extra inheritance does not cause her any future problems in that regard.

Good luck.