How to Write a Deed of Variation

[BereavedBotheredAndBewildered]

I am an executor of my Father's estate. (Mother died a while ago)

His beneficiaries are me and my siblings.

Two siblings would like to make a Deed of Variation leaving a part of their inheritance direct to their own DC.

Is there a simple standard wording that they can use that I, as executor, can accept?

Such as "I Name-Name, request that as a beneficiary of the Last Will and Testament of my father NameNameABC that a variation be made from my share of the estate in favour of my children MNO and PQR, and that they each receive £xxk from the estate. I confirm that I relinquish my right to the total of £xxk in favour of my children. Signed Beneficiary 1"

And witnessed? By someone who is not a beneficiary? As in signing a will?

When does the Deed of Variation need to be given to the executor?

Before applying for Probate?

Thank you.

Anyone got any experience?
TIA.

My understanding is there isn’t any set wording it just needs to be clear it’s a DOV. The wording you have proposed seems logical to me.

For the sake of - perhaps - £200-£300 it's better that they (not you as executor - it's up to them to do it as beneficiaries) consult a solicitor and do it properly.

Get it done properly through a lawyer. There are variables to consider and possible tax implications.

Thank you.

@easyday , could you elaborate a little on what sort of tax implications?

There is no inheritance tax due on the estate.

I would imagine they are doing this to avoid tax on transferring to their children, entirely reasonable but I would get a solicitor to draw one up. You have 2 years from date of death to complete a deed of variation.

I did one to change my grandmother's will as my father sadly died suddenly shortly after her, he was the original beneficiary, but by changing to allow my sibling and I to inherit directly from her we paid lHT on separate estates rather than on one, significantly lowering the amount going to HMRC. It won't affect tax payable on your father's estate, but my alter tax payable on their estates.

Thanks Wonderstuff. How sad to lose your Dad so quickly.

A variety of reasons. For grandchildren to have a bit of help now, for Uni costs (avoid the interest on student loans) help with flat deposit etc - and to do it without falling foul of the 7 year IHT rule should there be a 'worst happens' scenario, or the cap on annual giving etc.

All the additional new beneficiaries are full grandchildren of my mother and father. The extra allowance for property being passed to descendants has been applied (and approved), but our understanding is that grandchildren count as direct descendants so the IHT threshold would not be altered.

It is all very simple. No Stocks, shares or anything that would be subject to SDLT. Nothing where CGT would be an issue, no trusts, just the proceeds of house sale (single main residence)

Actually the Gov.UK site is very informative and helpful on the matter, with checklists and info on what needs to be included.

The key thing that I remember is that the executor needs to have evidence that all the beneficiaries need to agree to the changes, in order for the deed of variation to be valid.

No, it doesn't need to be agreed by all the beneficiaries, but it must be signed by all those who will inherit less as a result of the variation. If the variation leaves a beneficiary's inheritance intact, they do not need to sign the deed.