What are the advantages of a Deed of Variation?

Tom99

getmore4less wrote: »

Anyone can give their £3k exemption

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

Only gifts between spouses or civil partners are IHT free otherwise they count towards the annual £3,000 allowance, so if its not you spouse or civil partner you cannot give your partner £6k to pass on to someone else because the gift to your partner would use up your own £6k.

getmore4less

Tom99 wrote: »

Only gifts between spouses or civil partners are IHT free otherwise they count towards the annual £3,000 allowance, so if its not you spouse or civil partner you cannot give your partner £6k to pass on to someone else because the gift to your partner would use up your own £6k.

You don't have to give your partner £6k partner just gift £6k and it sorts itself out on the pooled resources over time.

Millions of households are working on this principle all the time.

SevenOfNine

Tom99 wrote: »

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.

What did you advise them to do about that? Others may use their rubbish solicitor!

Tom99

getmore4less wrote: »

You don't have to give your partner £6k, partner just gift £6k and it sorts itself out on the pooled resources over time.
Millions of households are working on this principle all the time.

Yes I am sure they do, providing the partner has a spare £6k laying about.