Deed of Variation

When a beneficiary receives an inheritance they do not need or some Inheritance Tax or Capital Gains Tax planning is required, a Deed of Variation can be made, which will redirect the gift to another person.

A Deed of Variation is a legal document which allows a beneficiary to re-direct their inheritance.  If the Deed of Variation is completed within 2 years of the death then it can be treated for Inheritance Tax and Capital Gains Tax as if the provision had been made in the Will, depending on the relevant elections being made.

Common reasons for people entering into a Deed of Variation are to re-distribute estate assets more tax efficiently for the estate or the beneficiary’s own Inheritance or general estate planning, to, pass an inheritance down generations or deciding to assist a charity.

It is possible to redirect unwanted inheritances to either individuals or trusts and it can be some or all of what the original recipient was given.

It is vital that no consideration is given in exchange for the Deed of Variation, in order to attract the beneficial Inheritance Tax and Capital Gains Tax consequences.

Specialist Deed of Variation Solicitors

Our Deed of Variation Solicitors have extensive experience advising clients on a range of legal matters including Deed of Variation and other tax planning measures. For more information on this please get in touch with one of our experienced lawyers.