What is a Deed of Variation?

A Deed of Variation is a legal document that can be prepared to alter, or ‘vary’, the beneficiary’s entitlement under the Will.

Although the meaning of the term is relatively straightforward, its application and the considerations it raises can leave those thinking of using it feeling uncertain.

When considering the distribution of a loved one’s estate, it’s important to have clarity and certainty based on the wishes expressed by the Executor.

If change is needed, that clarity and agreement should still be present.

One of our Winns Wills, Probate, and Trust team solicitors, Josef Lythe, discusses the uses and benefits of a Deed of Variation, with other key and related topics being covered as we seek to provide an informative look at the use of this deed.

 

Uses of a Deed of Variation

The document will be prepared as a Deed and must be agreed upon by all beneficiaries of the Will, or other parties affected by the change being made.

The beneficiaries of the Will can use a Deed of Variation to redirect part of their inheritance to other people or give it up entirely.

Additionally, they can use a Deed of Variation to set up a Trust. A Deed of Variation cannot be used to change any other part of the Will, such as the Executors or Trustees named in the Will.

It is worth noting that there does not need to be a Will for the beneficiaries of an estate to vary their entitlement. The beneficiaries of an estate, under the intestacy rules, can also vary their share in the estate.

For more information on the rules of intestacy, as well as how these legal rulings can affect you and your family, click here to be taken to our dedicated document.

Why would I prepare a Deed of Variation?

There are many different reasons to prepare a Deed of Variation, including:

• The beneficiary may not want all their inheritance and would rather someone else benefit from this
• To benefit children or grandchildren who were not born when the Will was prepared
• To benefit a charity
• It may be advantageous from a tax perspective
• If one beneficiary received less than the others for no clear reason, the beneficiaries may wish to equalise their shares.

Whatever your reason for needing a Deed of Variation, it could be beneficial to discuss it with a legal professional.

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Other considerations

If you are a beneficiary of an estate and are thinking about varying your entitlement, then it is important that you carefully consider your position and liaise with the executor of the estate.

Depending on your share, how the Will is drafted, and who you are, the tax position of the estate may be impacted by your decision to vary your entitlement.

Commonly, a Deed of Variation has tax benefits. 

Due to how a Deed of Variation can impact the estate and tax position, it is important that legal advice is obtained by the beneficiaries before one is prepared.

This will also ensure the Deed is drafted correctly and doesn’t create any unintended consequences for the parties involved.

Although Josef has covered the main topics around a Deed of Variation, we’ve answered some of the questions that relate to the subject, helping inform you about the processes and terminology involved, as well as the possible benefits of getting professional advice.

 

Rebecca came to my home making the whole experience easy and more manageable for me. Everything was explained clearly and very helpful advice given at every stage. Altogether, what can be a difficult and stressful situation was made so less complicated by Rebecca’s calm and confident approach.

Maureen

 

What are the legal requirements for a Deed of Variation?

When it comes to completing and enacting a Deed of Variation, there are important legal requirements that need to be fulfilled to ensure validity.

Firstly, it needs to be completed within two years of the day the deceased passed away. All those beneficiaries involved must agree to the terms and sign the variation to demonstrate universal agreement with this set of amendments.

Then there is the need for clarity in the statements made within the deed. These must clearly specify the elements of the estate being redirected and to which beneficiaries.

These new instructions must also comply with any relevant HMRC requirements that could have an effect on proceedings.

Can you alter a Will without a Solicitor?

Although it is possible to conduct the process yourself, would you feel comfortable doing so, ensuring all criteria are met and the validity of the document is absolute? By opting out of expert legal advice, you are increasing the likelihood of an error occurring in the process that can prove detrimental further down the line.

By sourcing professional advice from a solicitor, you can be assured that matters are being handled by experienced, specialist estate planning solicitors who have conducted these legal scenarios many times and are experienced in what they do.

 

We have been using Rebecca Harbron Gray from Winn Solicitors now for several years. Her service is excellent. She listens carefully to our requests and keeps us on track in ensuring that our wishes are phrased correctly within the requirements of the law. We would not hesitate in recommending her to anyone needing to organise their affairs.

Margaret

 

Benefits of a specialist estate planning solicitors?

There are many benefits when using a specialist estate planning solicitors to assist you. We’ve mentioned the reassurance and the comforting reliance on their experience and skillset.

But there’s also the methodical approach to the process that legal professionals take. Their legal advice will help break down the process into steps, making the whole thing more approachable and achievable.

Walking you through what’s needed now and what is going to follow will ensure you feel in control and far from overwhelmed. By using this professional advice, it can have the effect of reducing concern around matters you may not be experienced in.

What happens if there’s no Will?

A recent survey found that over half of the adult UK population did not have a valid Will in place should the worst come to pass. What happens to the deceased person’s estate? With no named beneficiaries or specific wishes, the deceased’s estate is intestate and subsequently at the hands of the rules of intestacy.

It’s perfectly understandable not to have heard of the rules of intestacy. They’re only relevant to certain people in specific circumstances. Essentially, they dictate how the deceased’s estate is administered and to whom, based on the relationship to the deceased person.

The rules of intestacy won’t take into account the individual preference of the deceased person and may result in conflict and disagreement in the longer term if wishes, expressed verbally but not in writing, are not delivered upon.

By seeking expert legal advice before this happens, this can be avoided.

Is all expert legal advice the same?

It’s important, when considering creating a Deed of Variation, to consider your legal company options.

Do your research, and look for a company that appeals to you, makes you feel comfortable, and reassures you that they’ve got your best interests at heart and seem diligent in their practices.

Check their review ratings and ask others for recommendations if they’ve been through something similar. All of this, collectively, will provide a clear picture of the quality of service and what to expect from this company based on feedback from genuine clients.

By doing this, you can ensure you’re getting the best possible expert legal advice.

 

Alex explained things really clearly and held our hands through the whole process. I feel that we received a first-class service from Alex and Winn. I would highly recommend them.

Matthew

 

How can Winns Help?

If you are a beneficiary of an estate and considering changing your entitlement, we can advise you on this and whether there will be any implications.

Additionally, we can assist by drafting the required Deed of Variation.

Delivered by a legal team with compassion, diligence, and decades of combined experience in matters of Wills, Probate, and Trusts, we’re ready to help.

Assisting you throughout the process, our team has the legal knowledge to support you every step of the way, ensuring the resulting Deed of Variation is valid and what is required.

Are you considering a Deed of Variation? For legal advice, book a no-obligation chat with our expert team today, for a time that suits you, and we can discuss your unique circumstances.

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