After someone has died, it is not possible for their Will to be re-written however, by using a Deed of Variation, the beneficiaries of their estate to make changes to how the estate is distributed, instead of following the terms detailed in their Will or the rules of intestacy.
What is a Deed of Variation?
A Deed of Variation is a legal document which allows beneficiaries of an estate to make changes to their entitlement following someone’s death. This deed provides flexibility in the case that circumstances have changed since the Will was written. Any changes outlined within a Deed of Variation are treated as if the deceased person had written them into their original Will.
But what if the deceased person didn’t leave a valid Will?
If someone dies without leaving a valid Will, the rules of intestacy apply to their estate. These rules are very outdated and do not reflect most modern day family circumstances.
Just as you would with a Will, you can use a Deed of Variation to change how the estate is to be divided under the rules of intestacy; you can only do this if you are a beneficiary in the first place.
Why would a Deed of Variation be needed?
There are a variety of reasons why a Deed of Variation might be required, some of the main reasons include;
The Will or Intestacy rules do not make provision for someone you feel should have some benefit from the estate. For example, children or grandchildren that were born after the date the Will was written or an unmarried partner who would not automatically inherit under the rules of intestacy.
You wish to give away all or part of your entitlement or redirect your inheritance into a Trust to benefit someone else.
To distribute the estate more evenly between the named beneficiaries. This may be because someone has been left a smaller percentage of the estate than other or excluded from the Will completely.
There may be a more tax-efficient way to distribute the estate and reduce inheritance tax payable by the estate.
Who can make a Deed of Variation?
The Deed of Variation is made by the beneficiary who wishes to redirect their inheritance. More than one beneficiary can redirect their share within the same Deed of Variation or multiple deeds can be created however, you are not able to make multiple deeds for the same asset(s).
It is important to remember that if the Deed of Variation results in an increase in inheritance tax then the executor(s) of the estate are required to sign the deed also. It is recommended to keep the executor up to date if you wish to complete a Deed of Variation to ensure the estate is distributed correctly.
When can I make a Deed of Variation?
A Deed of Variation can be made at any point during the administration of the estate, regardless of whether the Grant of Probate has been granted yet or not, however, if the deed has been put in place for tax purposes it must be completed within 2 years of the date of death.
Comentarios