Deed of variation

Connery

My father has passed away leaving the house to me and my two sisters and one brother, my eldest sister wants us to do a deed of variation before probate so she can leave her share to one of her children, whilst I know this is perfectly legal I know that she will still have use of the money, she is only doing it so that her benifits are not affected, this is morally distasteful to me and the other two, what I need to know is whether we would be committing fraud if we know what she is doing, I am going to say no but a legal reason as to why not would be helpful as this is obviously going to cause problems within our family

TonyMMM

Only the beneficiary who is adversely affected( your eldest sister)  needs to do the deed of variation - the others don't need to agree it or sign anything.

Yes - She could well be committing benefit fraud, 

xylophone

It's not on. It is a wilful deprivation of capital in order to keep,obtain or increase means tested benefits.
https://www.barkerevanslaw.co.uk/2016/09/deed-of-variation-changing-a-will-after-death/

When shouldn’t you use a deed of variation?

There are some situations where a variation of a Will or intestacy would be unwise. 

♦ Means-tested benefits – if a beneficiary is receiving or applying for means-tested benefits and he or she re-directs their inheritance to someone else, this is likely to breach the disclosure rules. It could make them ineligible for certain benefits or even liable to prosecution, in some cases.

pphillips

It sounds like she is attempting to commit benefit fraud, I think she is wrong to believe that DWP won't find out about the deprivation of capital.

Keep_pedalling

Explain to your sister, that once probate has been granted the will becomes a public document and her attempt at benefit fraud is going to be rumbled and she is going to be in deep trouble.

Is this child a minor per chance? 

getmore4less

AS long as no other beneficiary or the tax situation does not change there is nothing anyone even the executor can do to stop a DOV.

A DOV is still a gift from the beneficiary that is making the change, it just has (if done properly) potential tax benefits is as if it was given by the testator.

DOV do not need to be recorded anywhere or need to be given to any official organisation until needed for the tax benefit then HMRC take an interest.

The time to sort this out was before your father died

how old is the child?   if under 18 then the money would have to go into a trust.

Connery

The child is an adult, the purpose of a dov is so she can use the money from the bank account in her child's name

xylophone

the purpose of a dov is so she can use the money from the bank account in her child's name

This is undoubtedly deliberate deprivation of capital in order to keep entitlement to means tested benefits.

A DOV is still a gift from the beneficiary that is making the change,

Indeed it is.

https://www.standard.co.uk/news/crime/london-ambulance-worker-who-used-benefits-to-pay-for-holidays-hid-100000-inheritance-a4038546.html

getmore4less

Why bother with the DOV.

if that is the only reason, it has no legal standing for that purpose. 

Mojisola

Connery said:

My father has passed away leaving the house to me and my two sisters and one brother,

my eldest sister wants us to do a deed of variation before probate so she can leave her share to one of her children,

she is only doing it so that her benifits are not affected

The DWP will eventually see the will and contact her about overpayment of benefits and recalculate whether she is still entitled to any in the future.

You can't stop her doing a DOV but warn her that she may be charged with fraud and will certainly have to repay money.

pphillips

getmore4less said:

Why bother with the DOV.

if that is the only reason, it has no legal standing for that purpose. 

Exactly, she's only using the DOV and her child as an instrument of fraud thinking she can claim state benefits while also dipping into her inheritance. How utterly deplorable!