Deed of Variation and Probate

Robin9

My MIL passed away in December and her will split her estate in equal parts to her three children. Probate has been granted.

The children have agreed a DofV to include cash gifts to her neighbours (she had a draft of a new will at the time of her death) with two of the children passing their share to their children. My wife and I have no children.

1) Should my wife have to sign this DofV ?

2) Once the DofV has been signed does the will have to go back to the probate office?

JGB1955

I think your wife will need to sign the DOV as agreement that part of her share will go to allow cash gifts to neighbours. She doesn't need to be involved in what her siblings do with their share of the estate.


I don't think there is any need for the DOV to go back to probate - just make sure a copy is kept with the probate documents and that the DOV is made within 2 years of death.

Yorkshireman99

Robin9 wrote: »

My MIL passed away in December and her will split her estate in equal parts to her three children. Probate has been granted.

The children have agreed a DofV to include cash gifts to her neighbours (she had a draft of a new will at the time of her death) with two of the children passing their share to their children. My wife and I have no children.

1) Should my wife have to sign this DofV ?

2) Once the DofV has been signed does the will have to go back to the probate office?

The DOV is the responsibility of the executor. The beneficiaries execute the deed and this gives the executor authority to pay to the different people. A DOV is only needed if there are potential IHT implications.

nom_de_plume

Yorkshireman99 wrote: »

The DOV is the responsibility of the executor. The beneficiaries execute the deed and this gives the executor authority to pay to the different people. A DOV is only needed if there are potential IHT implications.

My understanding is that the DOV is the responsibility of those beneficiaries affected by the changes and not the executor (although the executor may perhaps be requested to make the alternative payments if distribution had not already occurred). The executor needs involvement only if the DOV affects the IHT of the deceased (perhaps where a spouse is using a DOV)..


To expand on your point that a DOV is only needed if there are potential IHT implications, it could be deemed that there are always potential IHT implications to the Estate of the person(s) giving away an inheritance by a DOV. A DOV immediately removes the legacy from the original beneficiary's estate whereas gifting the legacy creates a 7 year IHT risk. Who's to know if they could die themselves 2 weeks later and from the shock of winning the Euro Millions jackpot....

Tom99

How much is your wife giving to the neighbours?
Remember she has an IHT £3,000 gift allowance this year and can carry forward last years £3,000 so unless your wife is giving a substantial amount to these neighbours there is probably no need for her to be involved in a DOV she can just give the money herself directly to the neighbours or instruct whoever is executor to do that on her behalf.

castle96

Hopefully not 'highjacking'. May add extra info for all.
My circs…
Sister is exec and beneficiary. I am beneficiary. Noone else involved bar solicitor . IHT agreed and Probate granted. Sister tells me she wants to give me some of her share (bless her).
This is the form to complete ?
https://www.gov.uk/alter-a-will-after-a-death
Answers deem no need to send to HMRC/Probate. Presumably copy to solicitor so correct amount can be drawn to each of us.
Any further action or requirements ?
thanks

Tom99

castle96 wrote: »

Hopefully not 'highjacking'. May add extra info for all.
My circs…
Sister is exec and beneficiary. I am beneficiary. Noone else involved bar solicitor . IHT agreed and Probate granted. Sister tells me she wants to give me some of her share (bless her).
This is the form to complete ?
https://www.gov.uk/alter-a-will-after-a-death
Answers deem no need to send to HMRC/Probate. Presumably copy to solicitor so correct amount can be drawn to each of us.
Any further action or requirements?
thanks

That is a checklist not the deed of variation itself you still need to draft that. The solicitor can do that for your sister, cost maybe £200-£500. Your sister can draft her own document but a small mistake could end up costing her own estate a lot of IHT further down the line.

castle96

thanks.
Where can I find a draft for the actual D of V ?
IHT will be payable by her estate, but what 'mistake' would make this more.

nom_de_plume

castle96 wrote: »

thanks.
Where can I find a draft for the actual D of V ?
IHT will be payable by her estate, but what 'mistake' would make this more.

A quick search for DoV templates doesn't reveal anything useful and, despite the Gov. website suggesting a letter will suffice, the wording required sounds quite complex.


The IHT question was aimed at your sister's potential estate and not your MiL's to clear any confusion. If your sister's estate would potentially attract IHT and the DoV was deemed invalid, the value of what she passed to you would form a part of her estate (7 year rule aside) and would thus increase her estates IHT liability.

castle96

OK thanks. There is no MiL, just me and sister. Both are beneficiaries, 50/50. She is Exec. She wishes to 'give' me more of her share. IHT/probate agreed. These figures will not alter.

Cannot find anything useful to use as a templete/letter, without paying for it. Any ideas pl

Tom99

castle96 wrote: »

OK thanks. There is no MiL, just me and sister. Both are beneficiaries, 50/50. She is Exec. She wishes to 'give' me more of her share. IHT/probate agreed. These figures will not alter.
Cannot find anything useful to use as a template/letter, without paying for it. Any ideas pl

Either pay for a deed to be drafted or have a go a drafting your own using the .gov checklist.