Deed of variation after distribution and interest

Skint_yet_Again

I have distributed my dads estate and am now considering a deed of assignment to give part of my share to my son to avoid iht on my estate.

The funds are in my bank account gaining interest. If I give part of the distribution to my son does anyone know what I do about the interest on that part?

Notepad_Phil

The funds are in my bank account gaining interest. If I give part of the distribution to my son does anyone know what I do about the interest on that part?

My understanding is that a DOV only effects CGT and IHT and has no impact on income tax so any interest generated whilst it is in your account is yours and would go on your self assessment if you needed to do one.

I assume you'll just write the DOV in terms of a specific monetary amount and then send that monetary amount to your son on the same day as signing to keep things nice and simple.

jackieblack

https://forums.moneysavingexpert.com/discussion/comment/82020976#Comment_82020976

Where does it need to be sent?

(I am in the same situation as OP)

Skint_yet_Again

Thanks @Notepad_Phil I could only find one obscure legal page online that mentions this. You have said the same and I will likely follow this line

@jackieblack Im only aware of possibly needing to send the deed to HMRC, but I don’t need to send mine as my deed will not change the inheritance tax due.

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

Notepad_Phil

https://forums.moneysavingexpert.com/discussion/comment/82021122#Comment_82021122

Sorry I confused you - I meant that the money should be sent on the same day as the DOV is signed, not that the DOV was to be sent somewhere on the day of signing.

I'll modify my post to hopefully make it clearer.

jackieblack

https://forums.moneysavingexpert.com/discussion/comment/82021277#Comment_82021277

Phew! Thank you for clarifying, I thought I'd missed something!

jackieblack

https://forums.moneysavingexpert.com/discussion/comment/82021236#Comment_82021236

Thanks, that was my understanding too - no IHT for mine either