After the death of a person, a deed of variation can be created to alter the distribution of that persons estate. There are several reasons why people would enter into a one of these deeds. Not least to save inheritance tax, especially if a person passes away intestate.

If a person died intestate it is possible that because of the strict inheritance tax rules; their whole estate does not necessarily pass to a spouse who would be exempt from paying inheritance tax. If the adult children agree, they could sign a deed of variation to divert the whole estate back to the surviving spouse. This is just one example of why people would use them. There are many others including; using a deed of this type to change the terms of the persons will.

Deed of Variation form

There is no set form that can be used for a deed of variation. This is because the wording of nearly all deeds of this type are bespoke – deeds of variation are bespoke legal documents. This means they are written for a specific scenario. There is especially no do it yourself document available. We will explore the only do it yourself deed later in this page.

HMRC Checklist

As with the above question with regards to a deed of variation form. There is no HMRC checklist for a deed. In most scenario’s when entering into a deed of variation HMRC need not be involved. The variation document would only be sent to HMRC if it affects the current tax position. Noting that the document may also be required if the person who has agreed to enter into the variation dies within seven years; or perhaps 14 years if they had made use of other inheritance tax gifts. Another reason HMRC would also need to see this deed would be when any surviving spouse passes away. If you do wish to ensure your deed would be accepted and you are worried that no checklist exists then contact us for further advice.

Deed of Variation cost

As we previously outlined this type of document is bespoke thus the cost can also be variable. A quite simple cost for a deed of variation is around £250 plus VAT however, deeds that transfer estates to a trust can vary on cost considerably. If you are unhappy with the cost for services elsewhere call us. See if we’re able to offer a more cost effective approach.

Do It Yourself

The DIY market for legal documents is not really something we would advocate. As such the do it yourself deeds of variation is one example of a document that we would not be able to supply. If you are looking to enter into a deed of variation it is likely that you are looking to alter the inheritance tax position of either the deceased estate or perhaps the beneficiaries of that persons estate. HMRC may well be interested in viewing the document, although they do not supply a checklist. They may wish to check the document conforms with the legal position.

A Do it yourself deed could be a ticking time bomb, in other words you may not even know the do it yourself deed of variation is even invalid until many years later. Considering, that if the deed effects any tax position, it must be entered into within two years. In other words, unlike some legal documents, it cannot be corrected years later.

Deeds created to alter the distribution of an estate

Who signs a deed of variation

The person who signs is any person that is affected by the money that is going to be redirected. For example, if an estate is being left to five people and one of them does not wish to receive his or her inheritance then he or she would be the person who signs a deed of variation. The other beneficiaries need not sign the document and in fact not only do the others not sign the deed they do not even have to know that the deed was effected. Only the person or people affected by the deed signs the deed.

Letter templates

If you are a Solicitor or other legal professional looking for a deed of variation letter template. Then although we would not supply a complete letter template we would be pleased to help you with some standard clauses. If you are a member of the public looking for the deed of variation letter template. Then although it is possible to sign a deed of variation in this way we would not advocate such a template letter, this is because HMRC may need to know that the beneficiaries signed a deed of variation form and without the correct advice and correct legal clauses it may not be valid and comply with HMRC deed of variation checklist.

Example wording

We cannot supply the deed example wording. Although we are happy to supply basic example wording to any legal professional. In our opinion this type of document should not be created on a do it yourself deed of variation basis. Call us for a quote, we will be happy to let you know the deed of variation cost. No need to visit your home to create the document, we’ll simply email you some instructions to start the process.

Contact us today for more advice regarding all aspects of probates and wills.