Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • pmortl
    • By pmortl 14th Jun 17, 12:36 PM
    • 16Posts
    • 3Thanks
    Deed of variation or Gift???
    • #1
    • 14th Jun 17, 12:36 PM
    Deed of variation or Gift??? 14th Jun 17 at 12:36 PM
    My father passed nearly 2 years ago, leaving estate (just money less than £5K) to my mother entirely. We took over ongoing medical negligence claim which has now completed with about £90K been left to my mother as part of the will. It was my father's and my mother's wish that the money go to me. What is the correct way to pass this money to me and not their other children. My mother has given a letter of intent, but is this enough? I have a basic knowledge of deed of variation which can redirect some or all of an estate to someone not mentioned in my father's will but this is only 1 month away from the 2 year cutoff point. Could the money simply be gifted as it is well under any kind of Inheritance Tax (IHT) constraints?
    Many thanks in advance of your answers.
    Newbie MB'er, fingers x'ed (11/02/2011)
Page 2
    • Savvy_Sue
    • By Savvy_Sue 15th Jun 17, 1:42 AM
    • 37,968 Posts
    • 34,399 Thanks
    Regarding the DOV, is the DIY version easy to do or just bite the bullet and get it done by a solicitor, there is only mum as beneficiary, no impact on IHT as only £90K, is this all we need to consider?
    Originally posted by pmortl
    I'd advise legal route because this is a legal document with implications if you get it wrong, but you will, as stated, need to get a move on.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 2 shawls, 3 pairs baby bootees,
    1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 1 seaman's hat ...
    Current projects: 1 shawl, another seaman's hat
    • getmore4less
    • By getmore4less 15th Jun 17, 5:38 AM
    • 31,168 Posts
    • 18,681 Thanks
    The usual reason for using a DoV to transfer money from parent to (say) grandchild rather than parent to child is that if the child dies within seven years AND has themselves an estate (including the gift) that is subject to IHT, then there will be IHT, whereas by transferring it direct to the grandchild that is avoided. It's not clear to me from the account of what's going on as to why a DoV to give money to the child, rather than a spouse, helps.

    It's also not obvious from the OP as to why the other children of the claimant would be willing to sign a DoV.

    There is a Deprivation of Assets issue if and only if the mother is currently likely to require care in the immediate future.

    I can't really see why the DoV is needed.
    Originally posted by securityguy
    Only the mother would need to as they are the only beneficiary.

    Until someone comes up with a good reason for this DOV it seems to be a waste of time and money over a regular gift from the mother.

    A DOV(on the fathers estate) complicates the mothers estate as it now needs the transferable nil rate band calculating rather than the easy 100%.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,997Posts Today

8,515Users online

Martin's Twitter
  • Today's Twitter poll: Following yesterday's poll about being an organ donor when you die - would you consider being?

  • RT @clq: @MartinSLewis You hit that one right out of the park. It might be the Tweet of the Century. I don't think anyone can do any Batter?

  • You've run-out of puns. That's a bit of a googly, maybe I can help break your duck, though it is s sticky wicket, t?

  • Follow Martin