If you don’t agree with what someone has included in their Will or don’t like how they have decided to distribute their assets, while you can sometimes contest a Will, you can’t change it.
However, if you are a beneficiary and wish to redirect all or part of your inheritance to other people, you can choose to do so by drawing up a ‘deed of variation’.
In this blog, our specialist Wills solicitors answer some frequently asked questions about deeds of variation.
What is a deed of variation to a Will?
A deed of variation is a legal document that redirects an inheritance under a Will or alters the distribution of assets under the rules of intestacy if there is no Will.
A deed of variation can only be made by beneficiaries to a Will or those set to inherit under the intestacy rules and must be made within two years of a person’s death.
It can only be executed if the beneficiaries left worse off by the changes agree.
Can I redirect an inheritance to my children?
Yes, a deed of variation enables a beneficiary to redirect an inheritance to their children or to other people of their choosing. Gifts can also be diverted by deed of variation to charities or trusts.
Assets inherited in this way are treated as if they had been left to them directly by the deceased.
People may choose to redirect an inheritance to their children using a deed of variation for various reasons. For example, it may be that they are already comfortably off and instead would prefer to see their children benefit, or they may choose to pass on the gift immediately to avoid swelling their own estate for inheritance tax (IHT) purposes.
Why would you need a deed of variation?
In addition to redirecting a gift to a child, a deed of variation could also be used for the following reasons:
- Tax benefits. Diverting an inheritance could mitigate the amount of IHT or capital gains tax a beneficiary will pay.
- Estate planning. A beneficiary may wish to move the deceased’s assets into a trust.
- Divorce. If a beneficiary is considering a divorce, they may wish to redirect an inheritance so that it is not part of any financial settlement.
- Charitable giving. A beneficiary may want to donate part or all of an inheritance to charity.
- Intestacy. If the deceased died without a Will, the rules of intestacy apply, under which unmarried partners, stepchildren, and certain other people will not inherit. Drawing up a deed of variation can provide for those who miss out under the intestacy rules.
- Including a beneficiary. A beneficiary may choose to provide for someone left out of a Will.
How much does a deed of variation to a Will cost?
If you’re considering making a deed of variation, specialist legal advice is vital to ensure it is accurately drafted to reflect your wishes and legally valid.
A deed of variation must meet various legal requirements, including:
- It is dated within two years of the person’s death if it is to be utilised to change the inheritance tax position of the estate.
- It clearly sets out the amendments being made.
- It is agreed on and signed by all beneficiaries who are impacted by the change and any executors if the deed alters the tax position.
- It is correctly witnessed.
At Larcomes, our Wills solicitors have extensive experience drafting legally binding deeds of variation and can guide you through the process involved.
We charge £250 + VAT and any disbursements to draw up a deed of variation.
To find out more about how we can help, speak to our specialist Wills and Probate solicitors by calling 023 9244 8100 or making an online enquiry by clicking here.
When would you use a deed of variation?
A deed of variation is most used when there is no valid Will, and the deceased’s estate would therefore be distributed according to the rules of intestacy.
These rules state that only married or civil partners and some close relatives can inherit. Under the intestacy rules, cohabiting partners, stepchildren, and family friends do not automatically inherit.
When someone has died intestate and is not married but has a long-standing partner who would not automatically inherit under the intestacy rules, beneficiaries can make a deed of variation to enable them to benefit from the estate.
A deed of variation can also be useful where a marriage has revoked a Will, meaning intestacy rules apply, but beneficiaries recognise this might go against the deceased’s wishes.
Beneficiaries might also choose to execute a deed of variation if they believe it is the ‘right’ thing to do. If a mother has fallen out with one of her children before her death and written them out of her Will, the other child could agree that the estate should be split equally and sign a deed of variation to include their disinherited sibling.
If a Will is out of date, a deed of variation can also be used so that the distribution of an estate more accurately reflects the deceased’s circumstances. For example, if a Will has not been updated to allow for any children born after the date of the Will, a deed of variation can be made to include them.
Wills Solicitors Portsmouth
At Larcomes, our experienced team of private client solicitors in Portsmouth and Waterlooville advise on all aspects of estate planning, including Wills, deeds of variation, probate and Lasting Powers of Attorney.
Our specialist Wills and Probate Solicitors will work with you to assess your individual needs and guide you through the best possible estate and inheritance planning solution for you and your family.
We also have the expertise to deal with high value assets including issues such as inheritance tax and trusts.
Members of our team are fully accredited members of the Society of Trust and Estate Practitioners (STEP), a global professional body, comprising lawyers, accountants, trustees and other practitioners that help families plan for their futures.
Membership means we adhere to STEP’s Code for Will Preparation in England and Wales. Please click here to find out more about the Code.
Additionally, we are members of the Association of Lifetime Lawyers, an independent, national organisation which provides specialist legal advice for older and more vulnerable people, their families and carers.
To speak with one of our Wills and Probate team, please call 023 9244 8100 or make an online enquiry.
Please note that this article is not intended to be legal or professional advice. It is for general guidance only, and updates to the law may have changed since it was published.
