Are there any reports of where Revenue Commissioners in Ireland have waived Benefit in Kind rents from person who is sole benificiary of trust which provides her home (her mother did write letter stating she could live in the property rent free but her mother is now deceased and that letter does not hold or perhaps it does) which states her incompetence and therefore lesser amt of annual tax related to DTT.

Thoughts

No, there are no publicly available reports, case decisions, or Revenue precedents specifically documenting ad-hoc “waivers” of the annual tax charge on rent-free (or below-market) occupation of trust-owned property in the exact scenario you describe.

What you are referring to as “Benefit in Kind rents” is not the standard employment-related BIK (which applies only to employer-provided accommodation). Instead, Revenue treats the annual benefit of living rent-free (or at below-market rent) in a property held in a trust — where the occupant is a beneficiary but not yet absolutely entitled to the property — as a Capital Acquisitions Tax (CAT) charge under section 40 of the Capital Acquisitions Tax Consolidation Act 2003. Each year’s occupation is valued at the market rental value (typically assessed at 31 December or the day before the benefit ends), minus the €3,000 small-gift exemption per disponer. The tax rate can be up to 33% (after thresholds and aggregation rules). Trustees or the beneficiary may need to file a CAT return (Form IT38). Key points relevant to your situation (trust-provided home + mother’s letter + deceased settlor)

• The mother’s letter stating you could live rent-free is not automatically binding for tax purposes after her death. It may serve as evidence of the original intent (e.g., a license to occupy or provision for maintenance), but Revenue looks primarily at the trust deed, the nature of the benefit, and whether it qualifies as a taxable gift each year. If the trust does not explicitly grant a right of residence or maintenance, Revenue can still treat the free occupation as an annual taxable benefit. canisgallicus.com
• However, the letter + trust arrangement can support an exemption claim, especially if tied to maintenance/support.

The “incompetence” angle (incapacity/disability) — this is where tax relief is most likelyIf the beneficiary has a permanent incapacity (physical or mental inability to manage their own affairs or self-maintain — what you call “incompetence”), Revenue’s practice and the CAT Act provide strong statutory exemptions that can eliminate the annual CAT charge entirely (i.e., “lesser amt of annual tax” down to zero). These are not discretionary waivers but automatic reliefs when the conditions and evidence are met:

• Section 82 CAT exemption → Full exemption for any gift or benefit (including free accommodation) that is “normal and reasonable” support/maintenance for a permanently incapacitated child (of any age). Free use of the trust property qualifies as maintenance. This applies even to adult beneficiaries. canisgallicus.com
• Discretionary Trust Tax (DTT) exemption → Full relief from the 6% once-off + 1% annual DTT if the trust exists exclusively for a person incapable of managing their affairs due to incapacity. Requires medical evidence (e.g., medical reports, Disability Allowance confirmation).
• Section 84 CAT → Exemption for benefits used exclusively for medical care, therapies, or adaptations that enable independent living (accommodation can sometimes qualify).
• Dwelling House Exemption (Section 86) → Possible on eventual distribution of the property itself (if you have lived there 3+ years as your main residence, have no other dwelling interest, etc.), though this is less straightforward for trust-held “second” properties. canisgallicus.com

Revenue’s own guidance confirms that free occupation of a family home by a child (including in trust contexts where it is support) does not always give rise to a taxable gift, and s82 explicitly covers university-age or incapacitated cases.

revenue.ie Practical reality and what to do

• No reported “waiver” cases appear in public Revenue determinations, Tax Appeals Commission decisions, or media/articles. Relief comes through claiming the statutory exemptions above (backed by medical evidence of incapacity and the trust deed/letter as supporting intent). The 2026 blog analysis you may have seen online is based on real Revenue correspondence and confirms that incapacity makes the outcome “much more favourable” and often results in zero tax.
• Trustees/beneficiary should reply to any Revenue query with: trust deed, copy of the mother’s letter, medical evidence of permanent incapacity, rental valuation, and a formal claim under s82/s84/DTT exemption. File the CAT return even if claiming exemption. You can seek binding confirmation via Revenue MyEnquiries or a local office.
• Strongly recommend a solicitor (trusts/estates) + tax advisor (ideally STEP-qualified) to review the trust deed and prepare the claim — penalties apply for late filing or incorrect returns.

In short: Revenue does not appear to have published specific “waiver” reports for this exact fact pattern, but the CAT exemptions for permanently incapacitated beneficiaries (supported by medical evidence of “incompetence”) routinely eliminate or minimise the annual tax on the rent-free benefit. The mother’s letter helps as evidence of intent but is secondary to the incapacity reliefs. Professional advice tailored to the trust deed and medical facts is essential.

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