You can change a Will or, in the absence of a Will, how the intestacy rules operate and apply to the estate by executing a deed of variation, a legally binding document.
It can be used to make adjustments to a Will or Intestacy, such as adding beneficiaries or altering the rules dictating how assets are divided. All parties must sign the deed in the presence of witnesses for it to be enforceable. Seek professional advice before making any probate deed of variation changes because there can be tax ramifications or other things to consider.
To reduce your inheritance tax liability, you can use a deed of variation to transfer a portion of your claim from one beneficiary to another. The deed must be carefully drafted to meet all legal requirements and prevent any of the parties to the transaction from suffering unintended consequences.
What might cause someone to want a change?
Because it was not revised to reflect the deceased person's evolving circumstances at the time of their death, a will may occasionally be void or out-of-date. If there is no will, the Rules govern what should happen, which may not be how the departed person would have wanted their inheritance to be distributed.
If the beneficiary feels that other persons are more deserving of the request or if doing so will better reflect the wishes of the dead, they may decide not to receive the entire amount of inheritance to which they are entitled. To be qualified for the favourable tax treatment that may result from the amended inheritance, a Deed of Variation is necessary.
When is a Deed of Variation required?
Anyone who is entitled to an inheritance from the estate of a decedent and is an adult with the capacity to make decisions is free to inherit and distribute their inheritance as they see fit.
