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    • pmortl
    • By pmortl 14th Jun 17, 12:36 PM
    • 16Posts
    • 3Thanks
    Deed of variation or Gift???
    • #1
    • 14th Jun 17, 12:36 PM
    Deed of variation or Gift??? 14th Jun 17 at 12:36 PM
    My father passed nearly 2 years ago, leaving estate (just money less than 5K) to my mother entirely. We took over ongoing medical negligence claim which has now completed with about 90K been left to my mother as part of the will. It was my father's and my mother's wish that the money go to me. What is the correct way to pass this money to me and not their other children. My mother has given a letter of intent, but is this enough? I have a basic knowledge of deed of variation which can redirect some or all of an estate to someone not mentioned in my father's will but this is only 1 month away from the 2 year cutoff point. Could the money simply be gifted as it is well under any kind of Inheritance Tax (IHT) constraints?
    Many thanks in advance of your answers.
    Newbie MB'er, fingers x'ed (11/02/2011)
Page 2
    • Savvy_Sue
    • By Savvy_Sue 15th Jun 17, 1:42 AM
    • 38,500 Posts
    • 35,158 Thanks
    Regarding the DOV, is the DIY version easy to do or just bite the bullet and get it done by a solicitor, there is only mum as beneficiary, no impact on IHT as only 90K, is this all we need to consider?
    Originally posted by pmortl
    I'd advise legal route because this is a legal document with implications if you get it wrong, but you will, as stated, need to get a move on.
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    • getmore4less
    • By getmore4less 15th Jun 17, 5:38 AM
    • 32,035 Posts
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    The usual reason for using a DoV to transfer money from parent to (say) grandchild rather than parent to child is that if the child dies within seven years AND has themselves an estate (including the gift) that is subject to IHT, then there will be IHT, whereas by transferring it direct to the grandchild that is avoided. It's not clear to me from the account of what's going on as to why a DoV to give money to the child, rather than a spouse, helps.

    It's also not obvious from the OP as to why the other children of the claimant would be willing to sign a DoV.

    There is a Deprivation of Assets issue if and only if the mother is currently likely to require care in the immediate future.

    I can't really see why the DoV is needed.
    Originally posted by securityguy
    Only the mother would need to as they are the only beneficiary.

    Until someone comes up with a good reason for this DOV it seems to be a waste of time and money over a regular gift from the mother.

    A DOV(on the fathers estate) complicates the mothers estate as it now needs the transferable nil rate band calculating rather than the easy 100%.
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