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What are the advantages of a Deed of Variation?
borntobemild
Posts: 27 Forumite
Hi - I'm the executor for my mum's estate and the residual beneficiary. I want to give my brother some money - he wasn't left any. Is it best to do a Deed of Variation, or should I just give it to him? It doesn't affect anyone else.
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Comments
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If you give him money it might affect any IHT on your estate. The DOVwill avoid that.borntobemild wrote: »Hi - I'm the executor for my mum's estate and the residual beneficiary. I want to give my brother some money - he wasn't left any. Is it best to do a Deed of Variation, or should I just give it to him? It doesn't affect anyone else.0 -
Thanks. The estate is too small for IHT so that's not an issue.0
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Just to emphasise it is the value of YOUR estate that could be affected since gifts are added back for seven years,borntobemild wrote: »Thanks. The estate is too small for IHT so that's not an issue.0 -
Ah - slow of me. Thanks for the clarification.0
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The only real value is if you die in the next 7 years.0
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The only real value is if you die in the next 7 years.
and your potential estate including the value of the gift exceeds the IHT threshold If not it makes no difference0 -
You have not mentioned the amount, but up to £6000 could be covered by your annual exemption if you have not made any other substantial gifts in this and the previous tax year.0
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It looks like I can do this by writing a letter. What I can't find out from Google is what I do with this letter. Anyone know?0
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borntobemild wrote: »It looks like I can do this by writing a letter. What I can't find out from Google is what I do with this letter. Anyone know?
You said the amount is small, how much are we talking about here?0 -
£12k. Small as in irrelevant for IHT etc.0
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