It may be that you inherit something when someone passes away which you do not want, whether this is for inheritance tax reasons or because you decide that someone else needs the bequest more. The best way to achieve this is with a deed of variation.
Emma Davey, Partner in the Private Client department at WBW Solicitors in Launceston, explains how a deed of variation can be used by a beneficiary to change an entitlement under a will or the rules of intestacy.
An official legal document, a deed of variation outlines precisely how you wish your share of the inheritance to be distributed instead. This could include giving away the entire entitlement, setting up a trust, or giving certain parts of your inheritance to different people. It is not necessary for the people you are giving your entitlement to be named in the will.
A deed of variation can only be used to change what you are to receive under a will. However, they are sometimes used to alter the distribution of an estate for everyone’s benefit, meaning all the beneficiaries decide between themselves how each other’s shares should be changed.
If other people are affected by the changes you want to make, you need to get their permission before you can go ahead; for example, if the changes you want to make would involve other beneficiaries or the executor having to pay more inheritance tax.
You cannot use a deed of variation to change the executors or guardians named in the will, to change the inheritance of other people without their consent, or to give yourself a bigger inheritance, unless it is given to you by another beneficiary.
You can make alterations to your inheritance using a deed of variation before or after the executor receives the grant of probate to begin administering the estate, although for tax reasons, any changes need to be made within two years of the person passing away.
If the deceased person did not leave a will, you can use a deed of variation to amend how the estate has been divided up under the rules of intestacy. These rules are very rigid about who can inherit and how much, so there is a good chance that someone, such as an unmarried partner, will receive nothing when you think they should.
How a solicitor can help
Our experienced wills and probate solicitors can talk you through the changes you want to make, notify you of any permissions you may need, and explain the possible tax consequences of your proposed changes.
They will also ensure your deed of variation is properly drafted and executed to make it legally valid and provide your executor with a copy of the deed to give to HMRC to make sure the estate is correctly taxed.
For more information on deeds of variation, or any other private client issue, contact Emma Davey at WBW Solicitors in Launceston on 01566 771101 or email emmadavey@wbw.co.uk.
WBW Solicitors has offices in Axminster, Bovey Tracey, Brixham, Chard, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Seaton, Sidmouth, and Torquay.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
