A Deed of Variation is a legal document that allows the beneficiaries of an estate to alter the deceased’s Will or intestacy rules. The purpose of this is to redistribute some or all of the deceased person’s assets to beneficiaries other than those already entitled to the estate.
A Will is a document that allows you to decide what happens to your estate when you die. It usually appoints someone you trust to be able to manage your estate and affairs on your death. It is important to make sure that your Will reflects what you would want to happen to your estate if you were to die now. If you do not prepare a Will, or if you do not have a valid Will, your estate would be distributed in accordance with the Rules of Intestacy which you can read more about here.
Should circumstances change on your death, then your Personal Representatives can amend your Will or change the application of the Intestacy Rules by way of a Deed of Variation. This can only be done as long as all of the beneficiaries agree to those changes.
Any changes by way of Deed of Variation must be completed within 2 years of the death for inheritance tax and capital gains tax purposes.
Why would people consider a Deed of Variation?
- To reduce the amount of Inheritance Tax or Capital Gains Tax payable;
- To include someone who was left out of the Will, i.e. unborn grandchildren or a cohabiting partner;
- To put the deceased’s assets into a Trust;
- To avoid any uncertainty in the Will if it reads slightly ambiguous;
- To include gifts to charities.
If you have lost a loved one and you feel as though their existing Will or distribution of the estate on the Intestacy Rules does not reflect their circumstances on death, and you are considering a Deed of Variation, please feel free to contact our expert solicitors at Johnson Astills who would be pleased to assist you with this. You can call us at our office in Leicester or our office in Loughborough. Alternatively, you may prefer to email us at legal@johnsonastills.com or fill in our enquiry form.
