Deed of variation

Frogletina

I'm writing an instrument of variation myself. The estate was not liable for inheritance tax and I was the sole beneficiary.

There are 4 new beneficiaries who I am passing sums to who are my 4 grandchildren. One of these is a step grandchild, another is under the age of 18.

I am still waiting to get the current address of my step granddaughter as my daughter is no longer married to her father. I will then send a cheque.

I have opened up a trustee account for the girl under 18, the other two girls are in their 20s so I transferred money to one by cheque and the other online.

If I date the deed of variation today would that be ok even if I can't send the final cheque yet? 

I'm not sure if the date on the deed should have been before monies sent for all 4 of them or can it be anytime up to the two year limit. 

I would welcome any advice

pip895

I used an online template and I decided to do 4 individuals DOVs for simplicity.  From what I remember the DOVs were signed by the recipients prior to me sending out the money.  So for me I seem to remember there was a three or four week gap between when the first and last cheque/payment went out.

Frogletina

From what I know there is no need for them to be signed by the recipient, just myself and a witness.

SeniorSam

You are not gifting the money. The Deed of Variation is to vary the previous Will so that instead of you being the beneficiary, others are chosen. The gifts therefore are from the one who has died.

Frogletina

SeniorSam said:

You are not gifting the money. The Deed of Variation is to vary the previous Will so that instead of you being the beneficiary, others are chosen. The gifts therefore are from the one who has died.

I understand that, otherwise I would just gift the money rather doing a DOV

getmore4less

Frogletina said:

SeniorSam said:

You are not gifting the money. The Deed of Variation is to vary the previous Will so that instead of you being the beneficiary, others are chosen. The gifts therefore are from the one who has died.

I understand that, otherwise I would just gift the money rather doing a DOV

they are still gifts from the original  beneficiary,  they appear as gifts from the original doner for IHT and CGT purposes only if the DOV is worded correctly.

If your estate will have no IHT or CGT liabilities from that inheritance then the DOV is not needed.