Executors Changing Terms Of The Will of The Deceived

Tojo_Ralph

I’ll make this quick to avoid any suggestion of impropriety. Based on my reading of the roll of the Executor, an Executor can change the terms of a will (or apply to do so) as long as it does not reduce that which was originally bequeathed to the benefactors. In addition, this can be done without the approval of any benefactor as long as they are not impacted negatively?

The reason I ask is that I am coexecutor to a will which has three family members as beneficiaries, myself, coexecutor and a.n.other. Based on all our circumstances, I have briefly discussed with my coexecutor the possibility of us both increasing the 3rd benefactors share by reducing ours. As I understand it, we can do this without flagging it up to or getting approval from the 3rd benefactor who may feel they are a charity case. This being on the basis that they gain from the change not lose?

With the IHT status fully understood, lastly, how would that change be viewed in the eyes of the Taxman? By making the change are the executors deemed to be “gifting monies“ (7 year rule), or is distribution percentages not something the Taxman has any interest in?

Hopefully that’s clear. Thanks.

Lorian

https://www.gov.uk/alter-a-will-after-a-death

Keep_pedalling

Taxation is based on the total value of the estate, so unless the 3rd beneficiary is a charity or a political party changing who gets what makes no difference to how much tax is due.

Executors have no power to make this sort of change you have to do this ias a beneficiary via a deed of variation.

Tojo_Ralph

Keep_pedalling wrote: »

Taxation is based on the total value of the estate, so unless the 3rd beneficiary is a charity or a political party changing who gets what makes no difference to how much tax is due.

Executors have no power to make this sort of change you have to do this ias a beneficiary via a deed of variation.

The IHT part is understood and the proposed changes would not impact IHT. So making changes as a beneficiary, am I correct in saying that only those who stand to lose need be involved?

Regards the last part, am I correct in saying these changes (which effectively means we are giving our entitlement to monies away) will not be viewed as gifts when it comes to my IHT obligations on my death?

Thanks.

Dox

Tojo_Ralph wrote: »

The IHT part is understood and the proposed changes would not impact IHT. So making changes as a beneficiary, am I correct in saying that only those who stand to lose need be involved?

Regards the last part, am I correct in saying these changes (which effectively means we are giving our entitlement to monies away) will not be viewed as gifts when it comes to my IHT obligations on my death?

Thanks.

Does the will give you the right to renounce a gift, or part of a gift, left to you?

Tom99

Tojo_Ralph wrote: »

The IHT part is understood and the proposed changes would not impact IHT. So making changes as a beneficiary, am I correct in saying that only those who stand to lose need be involved?

Regards the last part, am I correct in saying these changes (which effectively means we are giving our entitlement to monies away) will not be viewed as gifts when it comes to my IHT obligations on my death?

Thanks.

Correct providing the document is executed up to 2yrs from death and it must include the specific IHT/CGT clause.

'For a variation to take effect for IHT and/or CGT purposes, it must contain a statement that those signing the variation intend it to take effect for tax purposes. The statement may apply to either IHT or CGT alone or for both taxes. The statement must include the appropriate statutory references. For example, a statement such as “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” would mean that the variation is to take effect for both IHT and CGT.'

Keep_pedalling

Tojo_Ralph wrote: »

The IHT part is understood and the proposed changes would not impact IHT. So making changes as a beneficiary, am I correct in saying that only those who stand to lose need be involved?

Regards the last part, am I correct in saying these changes (which effectively means we are giving our entitlement to monies away) will not be viewed as gifts when it comes to my IHT obligations on my death?

Thanks.

The gaining beneficiary does not need to be involved in the DoV but they could refuse the additional windfall is they chose to do so.

Provided the DoV is done within 2 years of the date of death then the amount you give away through the DoV is not considered to be part of your estate.

xylophone

Executors Changing Terms Of The Will of The Deceived

I’ll make this quick to avoid any suggestion of impropriety

If the heading is correct there has already been some impropriety....:eek:

Tojo_Ralph

xylophone wrote: »

If the heading is correct there has already been some impropriety....:eek:

Priceless and as typos go, that’s a corker. :rotfl:

Tojo_Ralph

Keep_pedalling wrote: »

The gaining beneficiary does not need to be involved in the DoV but they could refuse the additional windfall is they chose to do so.

Provided the DoV is done within 2 years of the date of death then the amount you give away through the DoV is not considered to be part of your estate.

The benefactor in question has no real knowledge of the estate value or how it is to be distributed, so we should be all good there.

Thinking some more in relation to the future, my own estate and my likely future IHT bill, I am guessing a DoV allows me to pass my resultant share of the estate to my children. I am just thinking it would make sense to pass the monies on to them via a DoV now rather than accept the monies and very likely pay IHT on the money in years to come?

Keep_pedalling

Tojo_Ralph wrote: »

The benefactor in question has no real knowledge of the estate value or how it is to be distributed, so we should be all good there.

Thinking some more in relation to the future, my own estate and my likely future IHT bill, I am guessing a DoV allows me to pass my resultant share of the estate to my children. I am just thinking it would make sense to pass the monies on to them via a DoV now rather than accept the monies and very likely pay IHT on the money in years to come?

Do not forget the will and probate records will be in the public domain once probate is completed.