What is a Deed of Variation
and How do I Obtain One?
A ‘Deed of Variation’ is a document that the executors or administrators of an estate can prepare and sign off on, in order to alter the distribution of an estate.
There are a lot of different elements involved in drawing up the most appropriate deed of variation, but Probate a Will can help with all of them, with fees starting from just £195 (plus VAT).
or simply give us a call on: 0203 985 9554
When Deeds of Variation are Required?
If your loved one died intestate (without leaving a will) the estate they left behind must be distributed in accordance with the Rules of Intestacy. This has several implications, just one of which is that the spouse of the deceased is limited by an upper ceiling in terms of the level of inheritance that they may receive.
This can cause potential hardship for the remaining partner. And in this case a Deed of Variation of Intestacy can be created. Thus allowing to alter the level of inheritance that the surviving spouse will receive.
The best way to avoid causing complications and associated administration costs after one’s death is of course to leave a will. As creating a Deed of Variation can be rather expensive for advice or general probate advice we can assist.
There are other very good reasons for leaving a will too; for instance, if an estate was to pass into intestacy and there is a need to create a Deed of Variation. This cannot be undertaken if the deceased left behind children under the age of eighteen. This is because these children will of course be beneficiaries of the estate too, and in order to create a deed, all of the beneficiaries must be in agreement.
Children under the age of eighteen are not permitted to consent to the creation of a DOV. This in turn can have implications for both the children themselves and the other beneficiaries of the deceased’s estate.
or simply give us a call on: 0203 985 9554
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Paying More Inheritance Tax
If the estate falls above the nil rate band (£325,000 as of April 2009) and no will is left, the estate will pass into intestacy. Which limits the value of the assets that the deceased’s spouse can receive to the first £250,000. However, if the spouse inherits this full amount as per the rules of intestacy, they will immediately become liable for an inheritance tax bill of 40%. Which is not small change by anyone’s reckoning.
However, with a deed of variation you can reduce the amount of inheritance tax. Inheritance tax is not payable between spouses; and so one could be created in order to mitigate this tax bill. This is only the case if the deceased did not leave behind any children under the age of eighteen. And the only alternative to this is a lengthy and potentially expensive court battle with the Inland Revenue themselves.
If all of this sounds rather daunting, not to mention concerning. Then it is best to find out more about the exact remit of the law as regards your own personal situation, and the estate concerned. Probate a Will are qualified expert professionals in the field. We’re here to provide you with up to date, accurate and empathic advice. By also providing support that is of course tailored to match your exact circumstances.
or simply give us a call on: 0203 985 9554