Deeds of Variation

No changes to Deeds of Variation

Following a period of consultation, George Osborne announced in his Autumn Statement that there will be no changes as to how Deeds of Variation can be used to mitigate Inheritance Tax.

Deeds of Variation are a useful tool for many families as within two years of a person’s death, the provisions of the Will can be reviewed by those affected and the distribution of the estate altered, and treated for inheritance tax purposes as if that had been given effect to by the deceased. Among other benefits, this can serve to mitigate inheritance payable both by the deceased’s estate and also potentially the deceased’s beneficiaries.

The government have said they will continue to monitor the use of Deeds of Variation and therefore the rules relating to these instruments and their effect on Inheritance Tax may yet be changed at some point in the future. If you are dealing with an estate and thinking of utilising a Deed of Variation it may therefore be sensible to seek advice in this regard prior to the 2016 March Budget.

If you would like advice on Deeds of Variation or the administration of estates generally please contact us.