Deed of variation
Posted: March 3rd, 2017, 5:39 pm
As previously mentioned, I have suggested to my children that we should vary my husband's will, leaving everything to me, rather than the IHT exempt to them and everything else to me, as the will states presently, so that his IHT exempt allowance and his RNRB allowance (possibly higher sums by then) would be available to set against my estate when I die. I had also thought that I would then make potentially exempt transfers to my children, not necessarily for the same sum (could be more or less,) and hope to live for 7 years or at least 3. I might also make gifts to the grandchildren. I had also been considering making some gifts before Wednesday in case the chancellor decides to reintroduce capital transfer tax. However, having now studied the Instrument of Variation checklist, I see there is a question which asks.
9. Have any assets been brought in from outside the estate and paid to the original beneficiary to compensate for their loss?
and the form says that if the answer to this question (inter alia) is yes, the variation may not be effective for tax purposes.
Does that mean that if I have given my children an equivalent amount of money to the £325k exempt allowance at this point, the latter won't be able to be used when I die, and possibly not the RNRB either? What if I give them a lesser amount at this point, which would have to be the case anyway if one is talking about cash. What if I give them an equivalent amount at a later date? Would the same rule apply?
I do intend to use a solicitor if we go ahead with the variation but may not be able to get an appointment in time to decide on any gifting before Budget Day.
9. Have any assets been brought in from outside the estate and paid to the original beneficiary to compensate for their loss?
and the form says that if the answer to this question (inter alia) is yes, the variation may not be effective for tax purposes.
Does that mean that if I have given my children an equivalent amount of money to the £325k exempt allowance at this point, the latter won't be able to be used when I die, and possibly not the RNRB either? What if I give them a lesser amount at this point, which would have to be the case anyway if one is talking about cash. What if I give them an equivalent amount at a later date? Would the same rule apply?
I do intend to use a solicitor if we go ahead with the variation but may not be able to get an appointment in time to decide on any gifting before Budget Day.