Indemnity policy instead of deed of variation in delayed house sale

[ralsta]

Indemnity policy instead of deed of variation?!

house sale is taking so so long and this is all we’re waiting for now, apparently the deed of variation is necessary and they won’t proceed without. But I’ve been looking into it and some places will do an indemnity policy? Has anyone had experience of this we’ve been waiting since the beginning of February now and our solicitors and the buyers are both ready to exchange but obviously can’t without this

Check what the Indemnity Policy will actually cover. Many only cover legal fees, if that were the case and the Deed of Variation meant that half the property was owned by someone else you would want to know that before exchange!

@TwoLeftSocksWithHoles im not actually sure why we need one, because the property is freehold. But there’s a maintenance company who cuts the grass etc so I’m assuming it’s to do with that?

This from Google... (sorry its so long)

A deed of variation is a legal document that allows beneficiaries to alter the distribution of an estate after someone passes away. By using it, those entitled to inherit can redirect their share to someone else, add new beneficiaries, or establish a trust, provided all affected beneficiaries agree. 1, 2]
Commonly known as an Instrument of Variation, this legal mechanism effectively rewrites the will (or intestacy rules) after death. 1, 2]

When and Why is It Used?
Beneficiaries typically use a deed of variation for three primary reasons: 1, 2, 3]
Tax Planning: It can be used to reduce potential Inheritance Tax (IHT) or Capital Gains Tax (CGT) liabilities. For example, a beneficiary can redirect an inheritance to their own children, bypassing a generation to save on IHT. 1, 2, 3]
Fairness and Provision: It provides an opportunity to support loved ones who were unintentionally left out of the will. 1]
Charitable Donations: Beneficiaries can opt to redirect a portion of their inheritance to a charity, which can also reduce the overall IHT rate applied to the estate. 1]

Key Conditions for Validity
For a deed of variation to be legally recognized and valid for tax purposes in the UK, it must meet specific criteria set out by HM Revenue and Customs (HMRC): 1, 2]
Two-Year Deadline: The deed must be signed and executed within two years of the deceased person's death.
Mutual Consent: All beneficiaries whose inheritance is being reduced must sign the document and agree to the changes.
In Writing: It must be a written document that clearly states exactly what changes are being made.
No Financial Gain for the Original Beneficiary: The original beneficiary varying their entitlement cannot receive any financial compensation for doing so. src="https://www.youtube-nocookie.com/embed/oQhAVYfAplA?start=37" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen> 1, 2, 3, 4, 5]