Deed of variation

buspassroadtripper

If one beneficiary of four, all receiving an equal amount, but whose personal circumstances are very different, chooses to opt for a deed of variation, is it advisable for all beneficiaries to do the same? Are the chances of a deed of variation being granted reduced if not all beneficiaries are choosing that option?

kidmugsy

It's my understanding that you can't do a Deed of Variation unless all the beneficiaries agree.

I hope someone more knowledgeable will come along to say whether that's right.

Savvy_Sue

I thought that too, but I'm sure there's a thread here or on another board to the effect that it's possible to do a deed for only those affected by the variation.

John_Pierpoint

Yes you are right, as long as the beneficiar(ies) involved in the inheritance in question, agree; then it is no business of the other beneficiaries.

There is a potential source of conflict; I believe HMRC will only tolerate one bite at the cherry, so the excluded beneficiaries might come to a similar wish.

There are also potential IHT/CGT/Income tax implications for the estate and the beneficiaries as a result of the legal fiction of changing the will.

The executor as a matter of courtesy, should be kept in the loop - the rest of the beneficiaries are a matter for the individual circumstances of the estate. There can be times when it is better to let sleeping dogs lie.

Now what is it you are thinking of doing within the first two years after the death? :D

System

I think also you have to be an absolute beneficiary, not a discretionary one.

Savvy_Sue

Clifford_Pope wrote: »

I think also you have to be an absolute beneficiary, not a discretionary one.

Are you able to explain that distinction in a few words?