Using Deed of Variation to add flexibility to will - any problems please?

aa42john

I am rewriting my will and am thinking of giving everything to a few named people whom I trust, requesting them (but not obliging them) to modify the will, taking account of my further detailed wishes which will be put in accompanying letter(s) which however will not be part of the will, and encouraging them to modify my will using a Deed of Variation after I am gone.

Does this strategy have any fundamental flaws? It seems to have flexibility and ease of modification via adding to my letter(s).

NB: The main reason for suggesting the above is NOT to minimise tax (although that might come into it), but (a) to maximise flexibility for unanticipated changes, and (b) because I actually want to give quite a lot to charity but do not want my heirs to feel badly treated. The above scenario would put the charity wishes in a letter so would not be binding. The heirs will also be the executors and so the final decision will be up to them.

All comments and ideas most welcome!

monkeyspanner

I think you may be in danger of creating a difficult situation for the heirs unless they are in similar economic circumstances. For a deed of variation to suceed all beneficiaries would have to agree. Thus if one or more disagree they could block the others wishes and in effect your wishes. It may be more effective to put a definite bequest in the will with regard to charitable gift perhaps limited (capped) to a maximum % of your estate.

dzug1

It sounds totally and fundamentally flawed to me - it will most likely not achieve what you want - which sounds a bit vague and wishy washy to start with

You need to start with a will expressing your current wishes and be prepared to change it at intervals as your circumstances (I hope not your mood) change s

If I were appointed an executor of such a will I would probably decline to act - particularly if not told what was going on in advance.

Annisele

You risk putting your beneficiaries into an extremely difficult position.

For example, if one of your "named people who you trust" is claiming means-tested benefits at the time of your death, they'll have an unpleasant choice. Either:

• They either keep the money that's been left to them (in direct contravention of your wishes); or
• They follow your wishes and give the money to a charity - and have their own benefits reduced, because they're treated as still having the money they've given away.

Similar issues arise if your "named people" are mid-divorce, bankruptcy, likely to need care in the future (deprivation of assets), and in many other situations.

In short, take proper paid-for legal advice before you even think of doing such a thing - and if your lawyer says it's a good idea, get a second opinion on the pitfalls before you go ahead.

John_Pierpoint

There can be additional complications caused by having a charity and HMRC both as "beneficiaries" of the same will, with your executor playing piggy in the middle.

https://forums.moneysavingexpert.com/discussion/4750473

That said there are additional tax reliefs for those paying IHT and leaving 10+% to charity

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/charity-reduce.htm

troubleinparadise

NB: The main reason for suggesting the above is NOT to minimise tax (although that might come into it), but (a) to maximise flexibility for unanticipated changes, and (b) because I actually want to give quite a lot to charity but do not want my heirs to feel badly treated. The above scenario would put the charity wishes in a letter so would not be binding. The heirs will also be the executors and so the final decision will be up to them.

If your desire is to give more of your estate to charity than heirs, then write your will accordingly.

It seems as though you're passing the buck on the guilt trip - you won't feel guilt because it looks as though you've left the money to the person, but then "suggesting" to them that they should give it to charity moves the onus onto them to behave "honourably".

Make it simple - leaving other people a headache to deal with won't endear you to them as they struggle to execute a complicated will.