Can I use different solicitors to do Deed of Variation for will?

weezie7

I am looking at doing a Deed of Variation for an inheritance coming to me. Do I have to use the solicitors that are Executors of the will please or can I use my own choice of solicitors?

Keep_pedalling

No, you don’t even need a solicitor to do a DoV

Keep_pedalling

what is the relationship between, you the deceased and person(s) gaining from the DoV? I ask because this is not always the best option tax wise.

weezie7

I intend leaving the money, from my stepmother, to 4 nephews. They are all adult.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82136522#Comment_82136522

The only possible tax downside is if her estate used the residential NRB exemption and the nephews don’t qualify for that exemption because they are children of your spouse's siblings rather than yours.

weezie7

keep_pedalling……don't understand what you are saying!

Yes, the NRB has been used on my stepmothers estate.

What exemption are you talking about? The nephews are my sisters boys…..

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82137050#Comment_82137050

@Keep_pedalling is referring to £175,000 residential nil rate band which is separate to the main £325,000. Was it necessary to claim the £175k to avoid IHT on stepmother's estate?

If it was necessary to claim that additional exemption, you would be considered a direct descendant of your stepmother for the estate to meet the 'closely inherited' definition. Assuming your sister was also a step child, then her children should meet the definition of step grandchildren for the purposes of the £175k exemption - see below

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm46013

It is always important to ensure a DOV does not trigger IHT where a specific exemption is only available for a specific class of beneficiaries and the subject of the DOV does not fall within that class. If you are unaware of these nuances, could be a reason for obtaining legal advice.

weezie7

Poisedon1 Thank you for the reply. I don't see the relevance of the £175k, as there is no property to be passed on.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82137314#Comment_82137314

In which case ignore my comment. I only mentioned it because you did not go in to any detail in your opening post and it may have been relevant under different circumstances.

One other point is that the residential NRB can still be claimed if she previously owned a home and moved out to live in rented accommodation, with family or in care.

ljayljay

https://forums.moneysavingexpert.com/discussion/comment/82137108#Comment_82137108

Re: HMRC internal memo..

This states 'The legislation (IHTA84/S8K) extends the meaning of ‘child’ to include step-child'

Does this also include the child of a step child?

Just asking because between my wife & I we have 7 grandchildren. However, I have 4 linear grandchildren & 3 step-grandchildren & my wife vice versa. When deciding on our wills we were looking at direct bequests (on second death) for the grandchildren. However, thought that this would complicate any RNRB that could be used.

Dead_keen

This states 'The legislation (IHTA84/S8K) extends the meaning of ‘child’ to include step-child'

Does this also include the child of a step child?

Yes.

The legislation say:

A person who is at any time a step-child of another person is to be treated, at that and all subsequent times, as if the person was that other person's child.

It then goes on to say that the same happens to link (i.e. to make them a lineal descendant) the step-child to the spouse of the deceased.