It is quite common for people receiving a legacy or inheritance to want to make an additional gift to family members or maybe a charity. It could be that the beneficiaries feel that someone who has been left out of a Will should have been included, or if there was no Will they may feel that the laws of intestacy do not reflect the deceased’s wishes. A Deed of Variation may be the answer.
To make lifetime gifts can have inheritance tax implications. However, if those gifts come from the deceased’s estate then the seven year rule will not apply. A Deed of Variation allows assets to pass free of tax to the intended recipient with the only tax, if any, being paid from the deceased’s estate.
A Deed of Variation could also be used to make inheritance tax savings by writing a trust into the Will or by giving an exempt gift to charity.
Our Recent cases
- Increasing the legacies to the grandchildren to £20 seemed a lot of money twenty years ago when the Will was made
- The favourite nephew felt guilty that his siblings had not been included in their Aunt's Will
- Placing the house in trust in order to limit the tax liability for the children with the hope the house could be passed to the grandchildren in the future
We regularly advise on Deeds of Variation, our experienced lawyers will be able to assist you with the preparation of a document which could save both tax and family unrest in the future. We are able to quote you at the start as to the cost of the document and in the majority of cases this will be a fixed fee.
