What Is A Deed Of Variation And How Can It Help Me?

A Deed of Variation is a formal document that allows Beneficiaries of a deceased person’s Estate to change the distribution of assets as outlined in the Will, or under the Rules of Intestacy where someone has died without leaving a valid Will.

This can be useful for various reasons, including reducing Inheritance Tax liability, providing for someone not mentioned in the Will, or redistributing assets amongst Beneficiaries.

Reasons to use a Deed of Variation

• Beneficiaries can redirect assets to minimise Inheritance Tax or Capital Gains Tax liabilities.
• Beneficiaries can give up part or all of their inheritance to benefit someone else, such as a family member or a charity.
• Beneficiaries can adjust the distribution of assets to ensure fairness amongst all Beneficiaries.

How would a Deed of Variation work

• Only Beneficiaries named in the Will or entitled under the Rules of Intestacy can create a Deed of Variation.
• A Deed of Variation must be completed within 2 years of the deceased person’s death.
• All Beneficiaries affected by the changes must agree to the Deed of Variation.
• Executors of the Estate may need to agree to the changes if they have an impact on any Inheritance Tax liability on the Estate.

What are the benefits and considerations?

• A Deed of Variation can help reduce Inheritance Tax or Capital Gains Tax liabilities.
• Beneficiaries can tailor the Deed of Variation to suit their needs.
• Once signed, Deeds of Variation can’t usually be changed.
• It is recommended to seek professional advice to ensure that the Deed of Variation is executed correctly.

If you’re considering a Deed of Variation, the Wilson Browne Private Client Team is here to help. Our experienced professionals are ready to provide clear, practical advice tailored to your needs. Contact us today on 0800 088 6004.