Deed of Variation question

Kwyjibo1

Hi,

My grandmother passed away some 18 months ago and left everything to my mum. My mum passed away just recently and I am applying for probate at the moment.

The estate is very close to the IHT threshold and I was wondering if I can exercise a DOV on my grandmother's estate (on behalf of my mother) in order to leave a bit of wiggle room. I am sole beneficiary and executor.

My mother did give me 2 gifts (in the last 18 months, so within the 7 year limit) which I have included on the IHT form (of some £25K in total) from my grandmother's estate telling me that these were my grandmother's express wishes (that weren't in the will but were communicated to her verbally).

TIA for any advice.

John_Pierpoint

I don't know the answer but I too would be interested, as I am toying with a similar idea.

There is some group of lawyers here, who seem to suggest that the executor of grandmother's original will can make the Deed of Variation.

(NB Remove the V space below - for some reason MSE does not like this site)

http://www.gb- legal.com/UK%20Deed%20of%20Variation.htm

The tax man talking to himself, about how to handle the situation if a DoV turns up withing 2 years, is here.

http://www.hmrc.gov.uk/manuals/tsemmanual/tsem1815.htm

There is a discussion of the legalities for tax of DoV's here (The tax bulletin dates back to 2002/3, so might have been changed since). It seems to say that you can stand in the shoes of your mother and make a DoV for her interests in your grandmother's estate.

http://www.hmrc.gov.uk/bulletins/tbissue74.htm

(The DoV discussion is half way through the document)

Let us know if you find the definitive answer to your question.

localhero

Kwyjibo1,

Yes, your mother's executor(s) can execute a deed of variation to vary your grandmother's estate .

Care is needed here as you only get one chance to get it right, and so I would seek out a `STEP` qualified solicitor who will have the necessary expertise to sort this out properly for you.

Sorry to hear of your losses also.

tatuma

John_Pierpoint wrote: »

There is some group of lawyers here, who seem to suggest that the executor of grandmother's original will can make the Deed of Variation.

(NB Remove the V space below - for some reason MSE does not like this site)

gb- legal.com/UK%20Deed%20of%20Variation.htm

Group of lawyers? Hardly. Desperados littering the forum with spam a few years back more like.

John_Pierpoint

As a newbie how come you know this

tatuma

John_Pierpoint wrote: »

As a newbie how come you know this

Check out my profile and join date

dzug1

It sounds as though it ought to be possible.

The executor of your grandmother's estate can make a deed of variation. To do so s/he requires the consent of any beneficiary adversely affected by the change. That's going to be your mother - who cannot give consent as she is dead. So at first sight no go.

But you are executor of your mother's will - so you now have (well will have) the power to give that consent on her behalf.

A STEP qualified solicitor seems the next stage - but it may be worth holding fire until you have a better idea of the figures involved - if it makes no difference to the net outcome it's a waste of money.