Deed of Variation

Frostynick

Hi there - would anyone know where I can download a form for a Deed of Variation to my father's will?
In his will, he has left me around £50000 but I would like to split it between my two children and my wife and I - each getting a quarter share. I believe I have to make a deed of variation but I cannot see any form to download. Maybe it has to be done through a solicitor only?
I would be grateful to hear from anyone with any comments.

g6jns_2

Frostynick wrote: »

Hi there - would anyone know where I can download a form for a Deed of Variation to my father's will?
In his will, he has left me around £50000 but I would like to split it between my two children and my wife and I - each getting a quarter share. I believe I have to make a deed of variation but I cannot see any form to download. Maybe it has to be done through a solicitor only?
I would be grateful to hear from anyone with any comments.

Remember that the DOVs have to be accepted by HMR&C so it might be wise to get a solicitor to do them. I. Any case unless your own estate is going be near the IHT threshold you could just give the others the money.

getmore4less

The first question is why won't gifts work.

then consider a DOV, their only real use is to reduce tax.

(which will make sense if trying to avoid kids taxable income from parents )

Crabapple

HMRC only want to see a DoV if it affects the tax position in the Estate. If it's one non-exempt beneficiary to four non-exempt it's not going to be an issue in that Estate.

I'd also ask if there was any reason you can't gift direct rather than do a DoV. A gift to a spouse will be tax free in any event. Gifts to children are Potentially Exempt Transfers and might need to be brought back into your Estate for tax purposes if you died within a certain number of years of the gift.

getmore4less

Crabapple wrote: »

HMRC only want to see a DoV if it affects the tax position in the Estate. If it's one non-exempt beneficiary to four non-exempt it's not going to be an issue in that Estate.

I'd also ask if there was any reason you can't gift direct rather than do a DoV. A gift to a spouse will be tax free in any event. Gifts to children are Potentially Exempt Transfers and might need to be brought back into your Estate for tax purposes if you died within a certain number of years of the gift.

7 years.

Still not clear what tax this is trying to mitigate

Mojisola

Leaving the will as it is and giving your wife and children gifts seems the easiest and cheapest route.

g6jns_2

getmore4less wrote: »

7 years.

Still not clear what tax this is trying to mitigate

IHT. Unless the OP's estate is, or is likely to be, above the IHT threshold then paying the others without doing a DOV is cheaper.

Mojisola

getmore4less wrote: »

Still not clear what tax this is trying to mitigate

The other reason people try this is if they are on means tested benefits but refusing an inheritance or doing a DOV counts as deprivation of capital.

g6jns_2

Mojisola wrote: »

The other reason people try this is if they are on means tested benefits but refusing an inheritance or doing a DOV counts as deprivation of capital.

Refusing an inheritance is not AFAIK deprivation of assets since until they agree to accept an inheritance they don't own it so they cannot deprive themselves of it. However you may be able to cite exact legislation to the contrary.

Mojisola

g6jns wrote: »

Refusing an inheritance is not AFAIK deprivation of assets since until they agree to accept an inheritance they don't own it so they cannot deprive themselves of it. However you may be able to cite exact legislation to the contrary.

The people who are affected by the changes have to agree in writing to a deed of variation. If it isn't theirs at this stage, why do they have to sign to give it away?

Frostynick

Sorry not to have got back to you all earlier but I was having major problems with my password.
The comments have been very useful thanks. Just to clarify one or two points. One of the reasons for doing the DOV would be that it would distribute money without extra impact on my IHT threshold which I will be above. Also there is only my sister and I mentioned in the Will - half of my Father's estate going to each of us so as there are no others involved presumably no one will object to any changes.
I'm still not sure whether there is an official form that I have to fill in or whether I just write down what I have done and lodge it with a solicitor or just keep a copy myself.