Deed of Variation is a type of deed that allows you to make changes
Sometimes called an Instrument of Variation or a Deed of Family Arrangement.
Within two years following a person’s death, this can be finished and distributed.
It is used to modify or change the provisions of a deceased person’s Will for a variety of reasons, although it is most commonly utilised for IHT or CGT purposes.
A Deed of Variation can only be used if: • everyone who is negatively impacted agrees; and • there is no reciprocity – no one gets rewarded for what they give up.
• A Gift With Reservation has no effect on any of the assets.
• If the change affects the rights of children or unborn children, a court order is likely to be required.
• To balance bequests, e.g., a brother and sister might be awarded different percentages of the residue but would wish to inherit the same amount through a Deed of Variation.
• To equalise wealth, for example, if a wealthy brother and a poorer sister are both left an equal amount of the parents’ estate, they may agree to change the percentages so that the poorer sister receives a larger share.
• Wealthy beneficiaries with children may wish to send their inheritance directly to their children in order to decrease their own IHT burden.
We collaborate closely with Trust firm that specialises in probate and estate administration.
Our courteous and professional staff would be happy to provide you with useful information and, if necessary, a free consultation to discuss your needs. If you would like us to handle the Deed of Variation for you, we will provide you with a fixed price quotation at the end of this discussion.
Our legal team will draught all of the necessary legal documents to change the terms of the Will and re-direct the estate as agreed by all parties. If minors are involved, this will also necessitate the creation of a Trust.