Will - deed of variation

[Secretsout]

Can I have some advice?

I’m executor of a will of which I’m the main beneficiary. I have the grant of probate. Death was recent.

I want to vary the will. No inheritance tax was due and this will not change. No beneficiary will be worse off. I want to gift more to three of the current beneficiaries and further gifts to people not named. Two of the current beneficiaries are under 18.

Can I draft my own document and what do I need to say? Or do I need a solicitor?

I would think a deed of variation would need to be done via a solicitor. We certainly used one for PIL when they died in close succession before the days when you could transfer inheritance tax allowances.

Unless you are thinking of dying yourself within the next 7 years, can you not just make the additional gifts yourself?

Any further advice....,does a deed of variation definitely need to be drafted by a solicitor or can I draft it myself and it be legally binding? What kind of wording would I need? Thank you

I did a variation myself without a solicitor in similar circumstances - no IHT -I was executor and sole benefactor. I think I rang the probate office - and on the back of link below - just wrote a simple letter. Probate said I didn't need to send it anywhere other than to those affected....
www.gov.uk/alter-a-will-after-a-death

I wasn't the sole benefactor - that would be beyond the grave weird. I was the sole beneficiary....

Check the rules for varying the will when the beneficiaries are under 18. I seem to remember it's not quite so simple?

I think if all the beneficiaries agree (via the letter you send) and the u-18's are not worse off as you state then should all be fine. I'm reading it that you wish to give some of your inheritance to others so can't see any reason why other beneficiaries would say no... (but usual disclaimer - not a legal bod)

I've had a look on the government website www.gov.uk/government/publications/inheritance-tax-instrument-of-variation-checklist-iov2
Check all the information here. I thought it was more complicated if there were under 18s, but it doesn't look like it if they don't lose out

Thank you all for the advice.

furry Thank you, I had seen that checklist.

I think I am going to write a letter to each of the beneficiaries stating how I intend to vary the will. I simply want to increase 3 of the gifts.

I have just had a quote from my solicitor who estimates it would take approx 3 hours work so she’s quoting £750 plus VAT. She’s clearly taking the piss so I’ll take my chances and do it myself.

Oh, just a thought. In the letter I send to the beneficiaries, do I need to send one letter that states what each of them receive or should I send a letter to each one that is personal to their gift? Just wondering if it will be awkward if they know what each other are getting.

I'm a probate solicitor and wouldn't really recommend you do it yourself - it's easy to get wrong. That said, it depends on your own tax position. You could just make these additional gifts with no deed of variation in place, in which case they'll be potentially exempt transfers (PETs) from your own estate for tax purposes and you'll need to survive seven years for them to fall outside your estate. If you die within the seven years your estate will be taxed on the value of the gifts. If you do a valid deed of variation, the gifts will be 'read back' into the will, meaning their value is outside your estate for tax purposes immediately. So if your estate is likely to be subject to inheritance tax, you should complete a deed of variation.

£750 does sound a little steep unless you're in the South East. I'd expect around £500. If properly done, it could save your estate a lot more than that in tax.

little thank you. I’m only varying the will as it was the benefactor’s last wishes to increase the gifts. They were poorly but the death was unexpected and he sadly passed away over Christmas before I could arrange for him to see a solicitor to change the will themselves. I feel that it’s the right thing to do. I definitely don’t want to ‘gift’ it from my own inheritance but I do want it to be ‘read back in to the will’. I’m in the Midlands. It seems a hell of a lot of money for something so straightforward 😩

I’m a private solicitor. I’d say £450-£500 is fair. A letter won’t do it as there’s no reading back statement and it’s not executed as a deed. Probate Registry won’t know that though as it’s an HMRC thing.

How small are the adjustments?

Oh and I assume you have a chargeable estate for IHT yourself? Otherwise it won’t matter.

Hi named No, there is no chargeable gain on the estate. The total is about £130k. I have the grant of probate. Two of the gifts are increasing from £5k to £10k, 1 gift from £2k to £20k and the 4th gift is not changing

Reading back is for IHT no CGT. It can be CGT but you don’t need that.

So assuming you don’t use your annual exemptions AND your own estate is chargeable for IHT, you’ll be at risk for about £6,800 of IHT if you die within 7 years and you’ve done this informally. So you can weigh that up.

Sorry, misread. £8,800 in tax at stake.