Deed of Variation (or Family Arrangement)
The Probate Department Ltd
death, Deed Of Family Arrangement, save CGT after death,
Deeds of Variation can change what happens in a Will after a death (England & Wales).
A typical use is when well off children inherit, and would prefer to give some or all of the cash (or whatever) to their children or grandchildren. They can just inherit and then give it away, but there could be a 40% tax charge if the giver is unfortunate enough to die within 7 years (and sometimes 14 years.)
With a Deed of Variation, the beneficiaries (in effect) make a formal agreement that the Last Will and Testament of the deceased is going to be altered.
All beneficiaries who lose out must agree, and if any of those are under 18 or not fully mentally competent, Court approval is needed (so it won't be worthwhile for smaller amounts).
Deeds of Variation can save Inheritance Tax and sometimes Capital Gains Tax - but only if the process is FULLY complete within 2 years of the death.
For more information, visit http://www.deedofvariation.com
, Deed Of Family Arrangement
, save CGT after death
, save IHT after death