Questions about deed of variation can anyone help please?

Skint_yet_Again

I am looking to distribute my dads estate by the end of April. Within 2 years of death I would like to give some of my cash inheritance to my son and another beneficiary would like to give some of her cash inheritance to her son. I have read about writing a letter instead of paying a solicitor

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

However different websites vary on whether a deed of variation can be done after distribution (as long as it’s within 2 years of death).

I noted that interweb also varies in advice over whether there can be 2 different deeds of variation. The estate is mostly made up of house sale and closed ISA’s. It is my understanding that the will can only be varied once for each asset. So would one of us need a deed for house proceeds and the other need a deed to vary ISA’s? Or does each share constitute a different asset of the estate?

I believe it wouldn’t make any difference whether the Isas or house proceeds were varied as there would be no change to the iht / cgt of the estate?

Would be grateful if anyone can help. I feel like this should be straightforward 🤯

bazdvd

why cant you just gift the cash when you receive it?
Are you claiming any means tested benefits?

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81970972#Comment_81970972

Presumably to guard against passing away within 7 years of making the gift. I assume the intention is to avoid this inheritance being part of an estate.

Skint_yet_Again

silvercar said:

Presumably to guard against passing away within 7 years of making the gift. I assume the intention is to avoid this inheritance being part of an estate.

Yes this is correct. Especially for me as I am single and only have NRB & RNRB

Keep_pedalling

Yes a DoV can be carried out after the estate has been distributed.

Skint_yet_Again

Thanks @Keep_pedalling

Can anyone advise if there can be 2 deeds of variation by 2 different beneficiaries? Do they need to specify 2 different assets?

Has anyone written their own deed of variation and if so could you let me have a template?

Keep_pedalling

Each of the beneficiaries will need to do their own DoVs. Specific assets do not need to be mentioned just the amount.

Sorry I have never made one, so can’t help their.

bob_a_builder

Here is one I did based on info from a 'legal' web site which gave a template on info you provided (which site I'm afraid can't recall )
The web site made it clear that the sections b1 and b2 where vital to the doc

I was varying my inheritance to go to 2 others

For the avoidance of doubt, I'm not a lawyer !! - use it at you own peril

=================================
This deed of variation dated 1st xxxxx 20xx

Parties

1. Name & add
   (The current beneficiary)
2. Name & Add
3. Name and Add
   (Together the new beneficiaries)

Background

1. Name and Add
   [The deceased name] Died on [when] leaving a will dated [when]
2. The current Beneficiary inherited the Gift of Money (as defined below) and wishes to vary them as set out below

Operative Terms

Definitions

1. The definitions in the Will shall apply to this deed

Will

1. Under the Deceased’s will the current beneficiary is entitled to a legacy of 1/3 of the residue which equates to £ xxxx free of inheritance tax
2. Any previous Deeds of Variation did not affect the current Beneficiary’s entitlement to the Gift of Money
3. The current Beneficiary wishes to vary their entitlement to the Gift of Money under the Will as follows

 
Variation

1. By this deed the Current Beneficiary is varying their entitlement to the Gift of Money under the will so that the Will shall have effect as if:

a. The one third of the residue ( £ xxxx ) gifted to the Current Beneficiary for the Gift of Money in the Will in clause 4b was split equally between the two New Beneficiaries absolutely free of inheritance tax

b. The Gift of Money had been given to the New Beneficiaries absolutely free of inheritance tax

1. The New Beneficiaries shall be treated for all purposes as having been the absolute owner of the Gift of Money as from the Deceased’s death subject to any inheritance tax attributable to it.
2. The provisions of section 142(1) of the Inheritance Tax Act 1984 and section 62(6) of the Taxation of Chargeable Gains Act 1992 shall apply to the variations made by this deed

This deed has been entered into on the date stated at beginning of this document

=============================

Followed by a page of dated Signatures / Addresses of all parties and a witness

Skint_yet_Again

Thank you @Keep_pedalling and @bob_a_builder

I did wonder if a witness signature was required as there is no mention on IOV2 form of it. The only signature mentioned seems to be those whose entitlement is adversely affected (just me). I suppose it doesn’t hurt.

Thanks again

tetrarch

Re the above - this is a link from a reputable site

https://www.accountingweb.co.uk/any-answers/can-i-draw-up-a-simple-deed-of-variation-myself

Absolutely no need for witnesses

Regards

Tet

Skint_yet_Again

Thanks tet but I think that example is a bit above my pay grade. Does anyone know why it includes a county and whose county?

There seems to be a section at the end for a witness

It seems to talk about indemnity for breach of trust of the executor?

It mentions stamp duty?

I have a cash inheritance and wish to give some of it to my son. Maybe the example from bob will suffice without witnesses?

Sorry for so many questions. Thanks again