Deed of Variation
A deed of variation is a mechanism mainly used by those who wish to redirect an inheritance in order to achieve inheritance tax savings.
Usually, inherited assets would accumulate within the taxable estate of the beneficiary who may not necessary need the money.
If they simply make a gift of the inheritance it would be subject to the 7 year Potentially Exempt Transfer Rules and potentially subject to inheritance tax.
By using a Deed of Variation they are able to make an immediate inheritance tax saving on their estate and the assets included in the variation are treated as never forming part of the original beneficiary’s estate.
Crucially Deeds of Variation must be made within 2 years of death.
We are able to assist with the preparation of Deeds of Variation starting from £45 including VAT for Deeds made using our online service.