44 thoughts on “Deed of Variation: Your Questions Answered”
Hi, My query is, having applied for a deed of variation well within the 2 year period following the death of the benefactor, it is very likely the estate will not be finalised within that 2 year period. Will this then mean that any monies that come in after the 2 years will be eligible for inheritance tax or any other tax, given that 40% has already been paid ?
As solicitors we cannot give specific tax advice (but are normally able to advise on the possiblity of a tax liability arising).
When it comes to the variation of a will, the variation needs to be completed within 2 years. We cannot offer specific advice on our website if only for the fact that we would need to know exactly what was happening with the estate, but completing the variation does not necessarily mean that a distribution has to take place within that time.
My father is set to revive some inheritance from his parents house sale. The will states that it will be split between him, his sister and a small percentage to his children. My dad is due to revive about £75000. However, he doesn’t need his money. He would probably keep between 5-10k. He lives in a safe and secure environment, doesn’t want to move, does not drive etc, so he would like to gift this to me to buy my first home. A problem we have come across is that he is on universal credit and Personal Independence Payment. His review is not until 2026 if that is relevant. What happens in this situation if he creates a deed of variation so I revived the 70k to buy a home and he keeps 5,000. Of course he would declare the 5,000 to DWP, but what impact does the deed of variation have? Will it go against him if he gifts this to me? He genuinely wants to give away the money to transform my life if he doesn’t go through deed of variation and just gifts it from the deposit he receives, then obviously his UC would be cancelled. He wouldn’t be benefiting from any of the money he would have given to me through deed of variation. Please could you advise?
Your father will need to declare the value of the gift and it will certainly affect his entitlement to benefits. Your father should seek independent legal advice before entering in to a deed of variation.
My mother has left her estate to be shared equally between myself and my sister. The estate will be all in cash and any IHT will have been paid. I want to redirect a share of my part of the inheritance to my two daughters so as to avoid increased inheritance tax on my own estate when I die. I think this would be a fairly simple Deed of Variation – could I do it myself? If the cash is paid into my bank account before the Deed of Variation is completed, does this count as becoming part of my estate? Thanks
We would always advise against drafting legal documents yourself, it is important to ensure that legal documents are drafted correctly. Once a deed of variation has been signed it cannot be altered, even in the event of a mistake.
You must not take receipt of the funds if you are to enter in to a deed of variation.
Please contact us on 01376 567280 if you would like us to provide you with a quote.
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Hi,
My query is, having applied for a deed of variation well within the 2 year period following the death of the benefactor, it is very likely the estate will not be finalised within that 2 year period. Will this then mean that any monies that come in after the 2 years will be eligible for inheritance tax or any other tax, given that 40% has already been paid ?
Thank you for your comment.
As solicitors we cannot give specific tax advice (but are normally able to advise on the possiblity of a tax
liability arising).
When it comes to the variation of a will, the variation needs to be completed within 2 years. We cannot
offer specific advice on our website if only for the fact that we would need to know exactly what was
happening with the estate, but completing the variation does not necessarily mean that a distribution
has to take place within that time.
We suggest you contact our Private Client Department about this if you want some legal advice.
Hello,
My father is set to revive some inheritance from his parents house sale. The will states that it will be split between him, his sister and a small percentage to his children. My dad is due to revive about £75000. However, he doesn’t need his money. He would probably keep between 5-10k. He lives in a safe and secure environment, doesn’t want to move, does not drive etc, so he would like to gift this to me to buy my first home. A problem we have come across is that he is on universal credit and Personal Independence Payment. His review is not until 2026 if that is relevant. What happens in this situation if he creates a deed of variation so I revived the 70k to buy a home and he keeps 5,000. Of course he would declare the 5,000 to DWP, but what impact does the deed of variation have? Will it go against him if he gifts this to me? He genuinely wants to give away the money to transform my life if he doesn’t go through deed of variation and just gifts it from the deposit he receives, then obviously his UC would be cancelled. He wouldn’t be benefiting from any of the money he would have given to me through deed of variation. Please could you advise?
Thank you for your enquiry.
Your father will need to declare the value of the gift and it will certainly affect his entitlement to benefits. Your father should seek independent legal advice before entering in to a deed of variation.
My mother has left her estate to be shared equally between myself and my sister. The estate will be all in cash and any IHT will have been paid. I want to redirect a share of my part of the inheritance to my two daughters so as to avoid increased inheritance tax on my own estate when I die. I think this would be a fairly simple Deed of Variation – could I do it myself? If the cash is paid into my bank account before the Deed of Variation is completed, does this count as becoming part of my estate?
Thanks
Thank you for your enquiry.
We would always advise against drafting legal documents yourself, it is important to ensure that legal documents are drafted correctly. Once a deed of variation has been signed it cannot be altered, even in the event of a mistake.
You must not take receipt of the funds if you are to enter in to a deed of variation.
Please contact us on 01376 567280 if you would like us to provide you with a quote.