Deed of variation?

[cottagegardenflower]

The opposing solicitor is proposing this to an existing Will. We are soon to sign a mediation agreement and the deed of variation of the will is going to incorporate the agreed changes.

Just wondering what the point of this is. Our solicitor hasn't commented on this.

A deed of variation removes the 'payback' rule. e.g. say one person was to give £10k of their inheritance to another. If the 'gifter' dies within 7 years of this gift then the 'recipience' will be liable for inheritance tax on it. By changing the recipient before distribution this removes this possible liability.

@Itsbackagain Thank you. Sounds quite a sensible thing then :-)

My sister arranged one when my father's will mistakenly left the house to her (he was always a silly old git) and it was clear that hadn't been his intention at all (and there was no animosity over it, we all had a good laugh). The Deed of Variation gave all three of us equal shares.

😂