A Deed of Variation may be used, within two years of a person’s death, to redirect an inheritance you have received under a Will or Intestacy.
Deeds of Variation can affect inheritance tax after a person has died. This tax is applied to gifts and deemed gifts made in a person’s lifetime and, upon death, on their estate.
If the deceased died intestate (i.e. leaving no valid Will) a Deed of Variation provides a means of overriding the statuary division of his/her estate between spouse and blood relatives.
There are many circumstances in which the deceased’s executors and beneficiaries may wish to sign a Deed of Variation. For example, it may be felt that someone close to the deceased had not been properly provided for. Alternatively an affluent or elderly beneficiary might wish to redirect their legacy.