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A Deed of Variation is a legal document that allows beneficiaries to alter the distribution of a deceased person’s estate under a Will or the rules of intestacy, provided it is completed within two years of the Testator’s death.
A Deed of Variation can be used to:
Whether you are considering a Deed of Variation for tax planning or family reasons, it is important to understand how they work and the legal requirements involved.
A Deed of Variation is most commonly used for reasons of tax efficiency.
There can be inheritance tax (IHT) and/or capital gains tax (CGT) advantages to gifting by Deed of Variation rather than the original beneficiary making an informal gift after they have inherited.
For example:
This is because a gift made by Deed of Variation is generally treated as though it came directly from the Testator, rather than from the original beneficiary. As a result, the original beneficiary does not have to survive the usual seven-year period that normally applies to lifetime gifts for inheritance tax purposes.
A Deed of Variation can also be used for reasons other than tax planning.
For example:
There are a number of legal requirements that must be met when preparing a Deed of Variation, which is why we recommend seeking professional legal advice.
These include:
A Deed of Variation is a legal document that allows beneficiaries to change how a deceased person’s estate is distributed after their death. It can be used to redirect an inheritance under a Will or the rules of intestacy, provided it is completed within two years of the Testator’s death. If you are considering a Deed of Variation, the Wills and Probate team at Thorneycroft Solicitors can advise on whether it is appropriate for your circumstances.
A Deed of Variation may be used to improve inheritance tax efficiency, redirect an inheritance to another beneficiary, include someone who was unintentionally left out of a Will or help resolve disputes between beneficiaries. Every estate is different, and Thorneycroft Solicitors can advise whether a Deed of Variation is the most suitable option for your situation.
Yes, in some circumstances. A Deed of Variation can reduce inheritance tax by redirecting assets in a more tax-efficient way, depending on the circumstances of the estate and its beneficiaries. As the tax implications can be complex, Thorneycroft Solicitors can provide tailored legal advice to help you achieve the intended outcome.
No, but it is strongly recommended. A Deed of Variation must satisfy a number of legal and tax requirements, and mistakes can affect its validity or any intended tax benefits. Thorneycroft Solicitors can prepare your Deed of Variation and ensure it complies with the relevant legal requirements.
A Deed of Variation must normally be signed within two years of the Testator’s death. To qualify for inheritance tax or capital gains tax treatment, it must also meet the relevant legal requirements. If you’re unsure whether you are still within the time limit, Thorneycroft Solicitors can advise you on your options.
A Deed of Variation can have significant legal and tax implications. Obtaining professional advice helps ensure the document is prepared correctly, satisfies the relevant legal requirements and achieves the intended outcome.
If you are considering having a Deed of Variation drafted and would like legal assistance, our Wills and Probate team at Thorneycroft Solicitors will be happy to assist.
Contact us today on 01625 503444 or email [email protected].
Written by Julie Foundation, Legal Executive in our Wills and Probate team.
A Property and Financial Decisions Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more trusted people (known as your attorneys) to manage your financial affairs if you need assistance now or lose mental capacity in the future.
A Property and Financial Decisions LPA can allow your attorneys to:
It does not cover decisions about your health, care or medical treatment. These decisions require a separate Health and Welfare Lasting Power of Attorney.
Enduring Powers of Attorney (EPAs) are no longer available to create, having been replaced by Lasting Powers of Attorney (LPAs) in October 2007. However, if you made a valid EPA before this date, it may still be legally effective today.
Many people are unsure how EPAs work, when they need to be registered and whether they should be replaced with an LPA. Here are five facts that may surprise you.
 Taking children abroad after separation can raise important legal and practical questions for parents, particularly during school holidays and half-term breaks. Understanding when consent is required and what steps to take if disputes arise can help avoid unnecessary stress and last-minute issues.
As the summer holidays approach, many separated parents begin making travel plans with their children. While a holiday abroad is often something to look forward to, it can raise important legal issues where parents are no longer together. If both parents hold parental responsibility, there are clear legal requirements that must be followed before a child can be taken outside of England and Wales.
As a collaboratively trained family lawyer at Thorneycroft Solicitors, I am passionate about helping clients navigate separation in a way that prioritises their emotional wellbeing, understanding and long-term practical outcomes.
Collaborative family law offers a constructive alternative to the traditional court process, placing families firmly at the centre of decision-making and encouraging a more cooperative approach to resolving disputes.
Mother’s Day is often portrayed as a joyful celebration, a day filled with cards, breakfast in bed and family time. However, for many separated parents, Mother’s Day can also be one of the most emotionally challenging days of the year. For some mothers, it may be a day when they are not able to see their children at all.
While the focus of Mother’s Day is rightly on celebrating motherhood, it is also worth recognising that for many families navigating separation, the day can look very different.
Valentine’s Day is that gloriously romantic time of year when lovebirds everywhere exchange gifts. But while romance is in the air, love doesn’t always come with a user manual, particularly when life starts to involve shared homes, finances and plans for the future.
The government has announced further amendments to its proposed reform of agricultural and business property relief (APR and BPR), following sustained engagement with stakeholders in the farming and business communities. These changes materially alter the scope of the measures originally announced and will be of particular interest to landowners, family businesses and their advisers.
It’s a familiar scene in films and TV dramas: the family gathered in a wood-panelled office for the reading of a will, only for stunned silence (or heated arguments) to follow when the inheritance isn’t what anyone expected.
But while Hollywood may exaggerate, disputes over wills and estates, known as contentious probate, are increasingly common in real life. Rising property prices, blended families, and complex financial arrangements mean more estates are being challenged.
