Deed of Variation

Helping you adjust a will or estate to reflect your family’s needs

When someone passes away, their estate is distributed according to their will or, if there’s no will, the rules of intestacy.

When someone passes away, their estate is distributed according to their will or, if there’s no will, the rules of intestacy.

But what happens if the Will doesn’t reflect the family’s wishes, or if changes need to be made for tax or personal reasons? A Deed of Variation can help.

At Dootsons, we understand that dealing with these matters can feel overwhelming, especially during an already difficult time. Our experienced team is here to guide you through the process, offering clear advice and practical support.

What is a Deed of Variation?

A Deed of Variation is a legal document that allows beneficiaries of a will (or those entitled under intestacy rules) to change how the estate is distributed. It gives beneficiaries the flexibility to adjust the distribution of assets to better reflect the family’s wishes or financial circumstances.

This might involve redirecting an inheritance to another person, such as a family member or charity, or correcting errors in the will. A Deed of Variation can also help with tax planning, ensuring the estate is managed in the most efficient way possible.

When is a Deed of Variation Required?

A Deed of Variation isn’t always necessary, but it can be invaluable in certain situations. You might need one if:

The will doesn’t reflect the deceased’s wishes

For example, if the will was written many years ago and doesn’t account for new family members or changing circumstances.

Someone has been left out

A family member or dependent who was financially reliant on the deceased may have been unintentionally excluded.

Tax planning is needed

If a beneficiary already has a large estate, they may wish to redirect their inheritance to reduce their own inheritance tax liability.

There’s a mistake in the will

Errors or unclear wording in the will can lead to disputes or confusion, which a Deed of Variation can resolve.

What Time Limits Are There?

Although a Deed of Variation can be done at any time, from a tax-saving point of view, it must be completed within 2 years of the date of death. The correct declarations must appear in the document, and there must be no cash payment given to any beneficiary as consideration for entering into the deed.

Common Situations for Using a Deed of Variation

Here are some examples of when a Deed of Variation might be used:

Providing for children or grandchildren

A parent may choose to redirect their inheritance to their children to reduce the size of their own estate and minimise future inheritance tax.

Supporting a dependent

If a dependent, such as a partner or child, was left out of the will, a Deed of Variation can ensure they receive financial support.

Charitable donations

A beneficiary may wish to redirect part of their inheritance to a charity, which can also reduce the overall inheritance tax liability.

Avoiding disputes

If there’s disagreement among family members about the distribution of the estate, a Deed of Variation can help reach a resolution.

Get in touch online

Fill in your details below and a member of our team will be in touch.

    What else do i need to know?

    The cost of a Deed of Variation depends on the complexity of the estate and the changes being made. At Dootsons, we offer clear and competitive pricing, with no hidden fees. After discussing your situation, we’ll provide a tailored quote so you know exactly what to expect.

    In addition to our fees, there may be other costs, such as court fees or payments to third parties (known as disbursements). We’ll explain these costs upfront and ensure you’re fully informed before proceeding. You can find more information here.

    A Deed of Variation can technically be completed at any time. However, if the purpose is to save inheritance tax, it must be completed within 2 years of the date of death. This is because HMRC only allows tax benefits if the variation is made within this timeframe and includes the correct declarations. If you’re unsure about your situation, we can help you assess your options.

    All beneficiaries whose inheritance is affected by the changes must agree to the Deed of Variation. This includes anyone whose share of the estate will be reduced or redirected. If any of the beneficiaries are under 18 or lack mental capacity, court approval will be required before the variation can proceed.

    No, a Deed of Variation cannot be used to avoid losing means-tested benefits. If a beneficiary redirects their inheritance to someone else, it will still be treated as a gift for benefit assessment purposes. This means it could affect their eligibility for certain benefits. If this is a concern, we can advise on alternative options.

    While it’s not a legal requirement to use a solicitor, it’s highly recommended. A Deed of Variation must meet strict legal and tax requirements to be valid, and any mistakes could lead to disputes or tax penalties. Working with a solicitor ensures the document is drafted correctly and that all parties understand their rights and obligations.

    A Deed of Variation can have significant tax implications, particularly for inheritance tax (IHT). If the variation redirects assets to a spouse, civil partner, or charity, those assets are usually exempt from IHT. However, to benefit from these tax savings, the variation must be completed within 2 years of the date of death and include the correct declarations. We can guide you through the process to ensure all tax obligations are met.

    If there’s no will, the estate will be distributed according to the rules of intestacy. A Deed of Variation can still be used in this situation to adjust how the estate is divided. For example, beneficiaries may agree to redirect their share to someone else, such as a dependent who wasn’t accounted for under intestacy rules. We can help you navigate this process and ensure the variation is legally valid.

    The time it takes to complete a Deed of Variation depends on the complexity of the estate and how quickly all parties can agree. In straightforward cases, it can be completed within a few weeks. However, if there are disagreements or additional legal requirements (such as court approval for minors), it may take longer. We’ll keep you updated throughout the process and work to resolve any delays as quickly as possible.

    Yes, a Deed of Variation can be challenged, particularly if someone feels they’ve been unfairly excluded or if there are concerns about undue influence or lack of understanding by the beneficiaries. To minimise the risk of disputes, it’s important to ensure all parties fully understand the changes and agree to them willingly. Our team can help ensure the process is handled correctly and transparently.

    If you’re a beneficiary and don’t agree to the proposed changes, the Deed of Variation cannot proceed. All affected beneficiaries must consent for the variation to be valid. If you have concerns about the changes, we can provide advice to help you understand your rights and options.

    Get to know

    the team

    Meet the team
    rebbeca-wills

    Rebecca Stringfellow - Partner & Head of Department

    Rebecca joined Dootsons in 2014 as a Solicitor in the Newton le Willows branch office. She is a graduate of Manchester Metropolitan University and subsequently completed the Legal Practice Course Programme at the Manchester Law School. She was admitted as a Solicitor in 2007. Rebecca is also a Full Member of STEP – the Society of Trust and Estate Practitioners, and a Student Member of Solicitors for the Elderly. Rebecca became a Partner in May 2019.