Deed of Variation

What is a Deed of Variation?

A Deed of Variation, sometimes known as a Deed of Family Arrangement, is a legal document used in the UK to alter the distribution of a deceased person's estate. It allows beneficiaries of a will or intestacy (dying without a will) to rearrange or redirect their inheritance to other individuals or entities, such as charities. This document must be completed within two years of the deceased's death to be effective for tax purposes.

What are the benefits of creating a Deed of Variation?

• Flexibility in Estate Planning: Provides flexibility after death to redistribute the estate to better reflect the current needs and wishes of the family or to address unforeseen changes in circumstances.
• Tax Efficiency: Can be a powerful tool for tax planning, helping to mitigate potential tax liabilities.
• Rectifying Wills: Useful in rectifying ambiguities or perceived unfairness in the will or under the rules of intestacy.