Changing a Will After Someone Has Died – What Is a Deed of Variation?
When someone dies and leaves a Will, it sets out who should receive their money, property, and possessions. But sometimes, the people named in the Will (called beneficiaries) may decide that they want to change things – for example, to give some or all of their inheritance to someone else.
This can be done using something called a Deed of Variation.
What Is a Deed of Variation?
A Deed of Variation is a legal document that allows someone who’s due to inherit something to change who gets it. They might want to share their inheritance with someone else or give it away entirely.
The new person receiving the gift doesn’t have to be named in the Will – it could be a family member, a friend, or even a charity.
For example, if you’re due to inherit £10,000 from your father’s Will, you could decide to pass on £5,000 of that to your sister using a Deed of Variation.
Why Would Someone Want to Do This?
There are many reasons. You might feel that someone else needs the money more than you. Or maybe you’d like to support a charity. Sometimes, it’s also done to help reduce Inheritance Tax (more on that below).
Is There a Time Limit?
Yes. If you want the changes to help with Inheritance Tax planning, the Deed of Variation must be done within 2 years of the person’s death.
What About Inheritance Tax?
One of the big advantages of using a Deed of Variation is how it’s treated for tax purposes.
If you make a gift through a Deed of Variation, it’s treated as if the person who passed away gave the gift – not you. That means it usually doesn’t affect your own Inheritance Tax situation, and it avoids triggering the “7-year rule” (which is where large gifts you make could still be taxed if you die within 7 years of giving them).
This can make things much simpler and cleaner for everyone involved.
What Happens If You Don’t Use a Deed of Variation?
You could still give someone your inheritance by simply gifting it to them. But if you give away more than £3,000 in a year, that gift might be counted as part of your estate if you die within the next 7 years – meaning it could be taxed.
A Deed of Variation avoids that issue.
Who Needs to Be Involved?
- The person giving up part or all of their inheritance must sign the Deed.
- The new person receiving the gift doesn’t always have to sign, but it’s sometimes helpful.
- The executors (the people managing the Will) might need to sign too – especially if the change affects how much tax is paid.
Everyone involved must be over 18 and able to make their own decisions. (Different rules apply if a child’s inheritance is being changed – this article doesn’t cover that.)
What If There Was No Will?
Even if someone died without a Will and the estate is being shared out according to the Rules of Intestacy, a Deed of Variation can still be used to make changes.
Always Get Advice
Every situation is different, and it’s important to get proper legal advice before making changes.
Our friendly team can talk you through your options and help you decide what’s best for you and your family.
The author: Charley West
