Change distribution of estate

StackonTressel

My widowed mother will be inhering approximately £375k of her late fathers estate made up mainly of cash investments and savings. Probate has been granted under intestacy as there was no Will.  We are waiting for HMRC to approve the calculations before the estate can be distributed to my mother.

For personal reasons my mother does not want the inheritance and has very kindly suggested passing the inheritance direct to me.  Is this possible?
Can the distribution of the estate be transferred into my name so that inheritance effectively bypasses by mother totally and is paid to me direct?

Mojisola

Yes, by a deed of variation.

74jax

Deeds of variation can be done. But don't spend it, as if she needs a care home or carers etc it will be classed as she still has it. It's not a problem, you just make the payments yourself rather from your mother's account. Was very straightforward for us. 

Keep_pedalling

Yes, she can complete a deed of variation and for tax purposes it would be as thought the money was never part of her estate.

It would however be treated as deliberate deprivation of assets, if those personal reasons include avoiding losing means tested benefits. It may also be treated the same way should she need care in the future.

StackonTressel

Great that's very helpful,  the reason behind it is my mother has an equity release mortgage. Which if the interest builds up to more than the value of the property value, the finance company would take any interest out of my mother estate in omce she has died.  It was her thought that this might avoid them 'getting their hands' on this money. She doesn't want to clear the equity release up despite my lobbying to her that she should use her mums inheritance for that.

xylophone

 Which if the interest builds up to more than the value of the property value, the finance company would take any interest out of my mother estate in omce she has died. 

Have you seen the ER agreement? Is she sure of how it works?

https://www.moneyadviceservice.org.uk/en/articles/equity-release

Keep_pedalling

It does sound as though she does not understand the ER. It would almost certainly be better to pay the whole thing off if possible, rather run up years of interest especially as we could be talking 20 years plus compound interest.

xylophone

And you need a Deed of Variation of Intestacy.
https://www.gov.uk/alter-a-will-after-a-death
https://www.gov.uk/government/publications/inheritance-tax-instrument-of-variation-checklist-iov2
Below may be worth a look?
https://www.legalo.co.uk/template/wills/deed-of-variation-for-intestacy/