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.

One of our Winns Wills, Probate, and Trust team solicitors, Josef Lythe, discusses the uses and benefits of a Deed of Variation.

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 re-direct 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.

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 others for no clear reason, the beneficiaries may wish to equalise their shares.

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.

How can Winns Help?

If you are a beneficiary of an estate and are 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.

Book a call with our expert legal team today.

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