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What is a Deed of Variation?

When a loved one passes away, the distribution of their estate doesn’t always reflect what the family feels is fair or appropriate. Sometimes, the terms of a Will – or the standard rules that apply when there is no Will (known as Intestacy) – don’t provide for every individual who should be considered. In such cases, a Deed of Variation can offer a compassionate and practical solution.

Understanding a Deed of Variation

A Deed of Variation, sometimes referred to as a ‘Deed of Family Arrangement’’, is a legal document that allows the beneficiaries of a deceased person’s estate to alter how the estate is distributed. This could mean changing what one or more beneficiaries receive under the Will or Intestacy Rules, to better reflect the family’s wishes or plan more effectively for tax implications.

Importantly, a Deed of Variation must:

• Be made in writing;
• Be signed by all parties changing their entitlement
• Be signed by the Executors if the variation results in an increase in the amount of Inheritance Tax payable, and
• Be executed within two years of the date of death to be effective for Inheritance Tax and Capital Gains Tax purposes.

When might you use a Deed of Variation?

Families may wish to use a Deed of Variation for several reasons, including:

• Reallocating inheritance: If a beneficiary wants to pass their share to someone else, such as a sibling, child, or charity, a Deed of Variation allows them to redirect their inheritance.
• Providing for overlooked individuals: The Will or Intestacy Rules might exclude someone unintentionally, such as a dependent, carer, or long-term partner. A Deed of Variation can ensure they are appropriately supported.
• Tax planning: A Deed of Variation can be used to reduce Inheritance Tax or Capital Gains Tax liabilities by redirecting assets in a more tax-efficient manner.
• Charitable giving: Families may wish to honour the deceased’s wishes (or reduce Inheritance Tax) by donating part of the estate to charities.
• Correcting errors or clarifying ambiguities: If the Will contains mistakes or unclear provisions, a Deed of Variation can help clarify and correct the intended distribution.

How can we help?

Our specialist team understand the emotional and practical complexities that can follow the loss of a loved one. Navigating probate and estate matters, especially if you’re considering a Deed of Variation, requires sensitivity, clarity, and expert knowledge.

We will:

• Review the Will or Intestacy details carefully.
• Explain the full implications of a Deed of Variation, including any tax consequences.
• Prepare the necessary legal documentation.
• Coordinate with all parties involved to ensure agreement and compliance.

Working with us

Every family is unique, and so are the circumstances surrounding each estate. Whether you are seeking to make a change to provide more fairly for loved ones, reduce tax burdens, or correct an oversight, we can guide you with expert legal advice tailored to your needs.

If you’re considering a Deed of Variation or simply want to know if it might be the right option for your situation, please get in touch with our team. We’re here to help you make informed decisions that honour your loved one’s wishes and protect your family’s future.