What are the advantages of a Deed of Variation?

Keep_pedalling

£12k is a bit too much to gift within your annual allowances so a DoV is the way to go if your own estate is likely to be subject to IHT.

AnotherJoe

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 simply keep it in case HMRC ever want to see it. You dont file it with a third party or send to HMRC. In my case i plan to post it to myself and keep it unopened so the franking mark acts as proof of date.

Once seven years are up, shred it.

kangoora

Not relevant to the OP but it's good to see someone doing something nice for one of their family who hasn't been included in an estate.

Instead of the all-too-often instances of people being cheated out of part (or all) of their inheritance by scumbag relatives.

Well done OP

borntobemild

Thanks AnotherJoe, I'll do that.

SevenOfNine

We did a DoV using a STEP registered solicitor, did not want DiY given that we are older, probably in the IHT bracket & it was £100k split between 2 minors! The cost was about £500 & we preferred a professional do it properly for us.

I believe there is specific terminology to use, found here https://www.gov.uk/alter-a-will-after-a-death

Yorkshireman99

SevenOfNine wrote: »

We did a DoV using a STEP registered solicitor, did not want DiY given that we are older, probably in the IHT bracket & it was £100k split between 2 minors! The cost was about £500 & we preferred a professional do it properly for us.

I believe there is specific terminology to use, found here https://www.gov.uk/alter-a-will-after-a-death

Despite what the notice says you have nothing to lose by formally informing HMR&C and keeping pfoof.

Tom99

A DIY one should be fine, just make sure you include the correct tax clause:

“The parties to this variation intend that the provisions of section 142(1) Inheritance Tax Act 1984 and section 62(6) Taxation of Chargeable Gains Act 1992 shall apply”

I happened to see a relatives DOV recently, prepared by their solicitor, which referred to the wrong tax clause and also mentioned a 'will' when there was no will. Just because you might have paid £200 or £500 for the document, don't assume its right without reading it through.

getmore4less

For £12k I would not bother.

If you have not been useing the £3k exemption, give him last years and this years now, then in April another £3k, the other £3k well use some common sense.

if you have a partner(and pool resources although not trickly needed) the £12k can go out now you each give this years and last years £3k

Tom99

getmore4less wrote: »

For £12k I would not bother.
If you have not been using the £3k exemption, give him last years and this years now, then in April another £3k, the other £3k well use some common sense.
if you have a partner(and pool resources although not strictly needed) the £12k can go out now you each give this years and last years £3k

I think you need a spouse to give £12k now.

getmore4less

Tom99 wrote: »

I think you need a spouse to give £12k now.

Anyone can give their £3k exemption

HMRC accepts pooled households(with partners) the so it comes from a shared pot.