Deed of Variation

loubel

If you want it to have legal, tax saving effect then it needs to be a correctly drafted Deed. Your best choice is to spend a few hundred on proper legal advice rather than risking it on something you download for free off the internet.

getmore4less

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.

Mojisola wrote: »

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?

Refusing an inheritance is different to a DOV, if you refuse one if fails and processed by the rest of the will often falling into the residual.

Mojisola

getmore4less wrote: »

Refusing an inheritance is different to a DOV, if you refuse one if fails and processed by the rest of the will often falling into the residual.

Both would be seen as deprivation of capital by the DWP - you are giving away money that would be yours.

getmore4less

Frostynick wrote: »

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.

As a couple remebmer you both need to die within 7 years and have over £650k.

As said before the wifes transfer is IHT exempt anyway.

if you gifted 1/2 to the wife then both use your £3k if not used allready and last years if not used. you are down to £6.5k liability each so another 2 years and it gone.

Have you looked on HMRC web site for what you need to do alway google with HMRC keyword when dealing with tax).

http://www.hmrc.gov.uk/cto/customerguide/page21.htm

Seems to cover some of the questions yuou are asking
eg.
•for Inheritance Tax, if a beneficiary who made a variation dies within seven years and HMRC ask about any gifts they made, the variation will be evidence that the assets it redirected should not be added to their estate

and here are some other things that may be usefull(not checked)

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=x-V9i7wy-T8&formid=3372

g6jns_2

Mojisola wrote: »

Both would be seen as deprivation of capital by the DWP - you are giving away money that would be yours.

Please provide some evidence for this. When I last asked the DWP they said the oposite.

g6jns_2

Frostynick wrote: »

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.

There should be no problem but spend the small amount to get it done by a solicitor to ensure HMR&C can't query it later. Make sure you use a solicitor who is up to speed on the IHT consequences.

joerugby

g6jns wrote: »

There should be no problem but spend the small amount to get it done by a solicitor to ensure HMR&C can't query it later. Make sure you use a solicitor who is up to speed on the IHT consequences.

If you decide to draft your own Instrument of Variation use the IOV checklist from HMRC to ensure that your draft meets their guidelines

http://www.hmrc.gov.uk/cto/iov.pdf

Mojisola

g6jns wrote: »

Please provide some evidence for this. When I last asked the DWP they said the oposite.

Did you get that in writing or from an advisor on the end of the phone?

The standard position is that if someone hides or gives away captial or assets or spends excessively so that they can claim or continue to claim means tested benefits, it's considered deprivation.

Just how can saying "No, thank you, I don't want that money from the will. I'll sign paperwork giving that money to someone else" not be deliberate deprivation?

g6jns_2

Mojisola wrote: »

Did you get that in writing or from an advisor on the end of the phone?

The standard position is that if someone hides or gives away captial or assets or spends excessively so that they can claim or continue to claim means tested benefits, it's considered deprivation.

Just how can saying "No, thank you, I don't want that money from the will. I'll sign paperwork giving that money to someone else" not be deliberate deprivation?

Yes I did get it in writing. The crucial point is that you never have the funds so you cannot deprive yourself of something you don't have. Nobody can be forced to accept a legacy. All a DOV does is to say that you don't accept the funds. Whilst a DOV can be up to two years from the date of death provided it is done before the estate is distributed then it is not deprivation of assets.

dzug1

There is no 'official form' that I know of.


A legal stationers might (but I haven't checked) sell you a template