Deed of variation or Gift???

getmore4less

securityguy wrote: »

The usual reason for using a DoV to transfer money from parent to (say) grandchild rather than parent to child is that if the child dies within seven years AND has themselves an estate (including the gift) that is subject to IHT, then there will be IHT, whereas by transferring it direct to the grandchild that is avoided. It's not clear to me from the account of what's going on as to why a DoV to give money to the child, rather than a spouse, helps.

It's also not obvious from the OP as to why the other children of the claimant would be willing to sign a DoV.

There is a Deprivation of Assets issue if and only if the mother is currently likely to require care in the immediate future.

I can't really see why the DoV is needed.

Only the mother would need to as they are the only beneficiary.


Until someone comes up with a good reason for this DOV it seems to be a waste of time and money over a regular gift from the mother.

A DOV(on the fathers estate) complicates the mothers estate as it now needs the transferable nil rate band calculating rather than the easy 100%.