Wills - house to Beneficiary 1 and rest of estate (cash etc) to Ben. 2. House sold to pay for care

Keep_pedalling

sillygoose1 wrote: »

Thank you! I think the "Deed of Variation" is the information I was after / had been missing.

I assumed that the Will had to be carried out (assuming Jane doesn't have capacity to change it) as it's written, in that the executor has to carry out the will as stated even if the beneficiaries would agree otherwise.

The other beneficiary and I could agree a way to split the money (if any was left after care fees!!) if the house had been 'liquidated'. I didn't think that was a realistic option as I thought there would be some tax etc implications with that, as I am also the beneficiary of the other person if/when the time comes.

If the 2 of you are on good terms then this would be the ideal solution.

badger09

sillygoose1 wrote: »

Thank you! I think the "Deed of Variation" is the information I was after / had been missing.

I assumed that the Will had to be carried out (assuming Jane doesn't have capacity to change it) as it's written, in that the executor has to carry out the will as stated even if the beneficiaries would agree otherwise.

The other beneficiary and I could agree a way to split the money (if any was left after care fees!!) if the house had been 'liquidated'. I didn't think that was a realistic option as I thought there would be some tax etc implications with that, as I am also the beneficiary of the other person if/when the time comes.

A Deed of Variation would need to be drawn up and signed by the beneficiary being adversely affected (or by their solicitor).

So, in your case, if the house has been sold, it would be for Beneficiary 2 to sign, as Beneficiary 1 would no longer have anything to inherit:cool:

sillygoose1

Thank you all!
I think if it does pan out with the "selling the house" scenario... that a 'deed of variation' sounds like the best thing.

Can anyone confirm, that if we changed it (assuming all the legal paperwork etc is in place) with a deed of variation, that this would be treated in tax etc terms as if the Will had "always" been this way?

The other beneficiary has willed their assets to me on their death, so if this happened within the 7 years (I think) for IHT, would the "redirected" money from Jane's estate be counted as a gift ? as in ... subject to IHT as it was "gifted" in the 7 years before death?

getmore4less

If done properly the DOV gift gets the equivilent status as if the deceased made it.
If IHT is a potential issues now or in the future
Depending on relationships might need to consider nil rate bands.
Downsizing rules may apply if you are issue of Jane.

Yorkshireman99

Sounds like an urban myth yo me.