DEED OF VARIATION (Changing an inheritance after death)
When someone dies, you may be receiving an inheritance you don’t need, and you wish to benefit someone else e.g. your own children. It is commonly used for tax planning purposes, so the value of your own taxable estate doesn’t exceed the inheritance tax thresholds.
Also, if you receive your inheritance then give it away without a Deed of Variation then you risk making a lifetime gift which could have its own consequences if you fail to survive 7 years.
A Deed of Variation is the perfect solution to redirect an inheritance you’re otherwise entitled to by Will or intestacy. So long as the Deed of Variation is signed within 2 years of death then it is read back as though the deceased made the amendment for both inheritance tax and capital gains tax purposes.
This is particularly beneficial for taxable estates and some of the inheritance tax allowances / exemptions were not fully utilised when they could otherwise have been.
The Deed of Variation needs to be signed by all beneficiaries who are affected by the variation and the Personal Representatives must also sign if the tax position changes.
WHAT TO DO NOW?
It is never too early to start planning for the future so contact our qualified and friendly Private Client team on 01943 461414 to make an appointment. The first step is usually the hardest!
Our Private Client department want to get to know you. They will listen to your circumstances and provide clear and uncomplicated advice tailored to your needs. Visits outside of the office can also be arranged for homes, hospitals, care homes or hospices.