Deed Of Variation Will

English law recognises that everyone should be free to leave their estate to anyone or any charitable causes they see fit. As a result, the Courts are often reluctant to step in and change the terms of a Will. However, the beneficiaries can sometimes vary a Will’s terms and change their entitlement by executing a ‘Deed of Variation’. A Deed of Variation will change the terms of the Will, provided the beneficiaries who are rendered worse off by the changes agree to them.

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What Is A Deed Of Variation?

A Deed of Variation enables beneficiaries to change their share of the estate’s assets. The document need not be in any specific format, but it must meet various legal requirements to be valid. Those requirements include the following:

The variation is in writing.
The variation is made within two years of the death of the person who made the Will.
The beneficiaries who are negatively impacted by the changes sign the variation.
The variation clearly states the changes being made.
The variation makes clear who any new beneficiaries are.
If the variation impacts the inheritance tax position, a copy is sent to HMRC.
The variation includes a statement that those involved intend it to be effective for inheritance and capital gains tax purposes.

When Might You Use A Deed Of Variation?

Deeds of Variations are intended to give beneficiaries the flexibility to adapt the terms of a Will as they see fit. There may be various reasons for a beneficiary wishing to implement a Deed of Variation, including the following:

• To make the distribution of the estate more tax efficient.

If the current Will does not enable the beneficiaries to take advantage of specific tax reliefs, they may use a Deed of Variation to distribute the estate more tax-efficiently.

• To include new beneficiaries.

The existing Will may not provide for people born after the maker’s death, such as new children or grandchildren. A Deed of Variation will ensure everyone receives a fair share of the estate regardless of when they were born.

• To even out the distribution.

If the beneficiaries feel that one individual has not received their fair share of the estate, they can use a Deed of Variation to balance things out. They may also decide to do so to avoid future disputes if a beneficiary is unhappy with their share.

• When you don’t need your entire share.

You may feel that someone else would benefit more from your share of the estate than you will. You can use a Deed of Variation to pass some of the assets left to you to another person.

• When you would like to support charitable causes.

Redirecting your share of the estate, or a part of it, to charity not only allows you to support causes that are close to your heart, but it can also improve the estate’s tax efficiency. Charitable gifts are exempt from inheritance tax, so increasing the amount of the estate donated to charity can reduce the overall inheritance tax liability.

• As part of your own estate planning.

Deeds of Variation can be useful tools in a beneficiary’s own estate planning. Redistributing your share of the deceased’s assets removes them from your estate and reduces the amount of inheritance tax payable on it when you die, thereby maximising its value for your loved ones.

Can A Will Be Changed After Death?

As we have explained, the Courts are often reluctant to change a Will after death since English law places significant importance on the deceased’s wishes. At the same time, however, it recognises that circumstances can change. A Deed of Variation enables beneficiaries to change the terms of a Will after its maker’s death to account for matters the maker may have been unaware of when they died, such as the arrival of new grandchildren, or for various other reasons, such as to balance out the distribution of assets or improve tax efficiency.

Unsurprisingly, however, Deeds of Variation are subject to strict legal requirements. It’s important to adhere to those requirements to ensure its validity. Accordingly, taking expert legal advice on any proposed Deed of Variation is essential. Our wills and probate solicitors offer estate planning advice tailored to your individual circumstances at highly competitive rates. We will consider your desired changes to the Will and advise on their effects. We will prepare a watertight Deed of Variation that accurately mirrors your intentions and advise on any follow-up requirements such as informing HMRC. We understand that estate planning matters are often sensitive, so we deliver our straightforward legal advice with a personal touch.