scrumpyjack wrote:
A deed of variation is very simple. It does not even need to be a deed (a 'Letter of Variation' is fine) and it only needs to be signed by those varying downwards their entitlement from the estate. The HMRC website sets out clearly the requirements. The thing you do need to be careful of is to include certain clauses re taxation.
When I was executor (and the one giving away my entitlement from the estate), I did it myself. I gave a copy to the solicitor dealing with the probate application and she was perfectly happy with it. It is not a big deal. HMRC is, I think, only really interested where IHT is affected by it.
I think it is dangerous to treat variations to a Will lightly. Changes can come back and bite and if the Deed (or letter) is not drawn up properly and some beneficiary has a change of heart it could be awkward for the Executor (or indeed costly) And remember, although the legatee is no longer with us, I hope Executors would at all times respect his/her wishes as set out in the Will. That is why I would not want to leave too many opportunities for change in my Will. The Will sets out what I want and certainly with leaving legacies to charities, I know who I want to leave money to and do not want to hand that decision to my Executors to exercise their discretion. I feel strongly which charities I want to benefit and they are not some animal sanctuary! And of course this discussion is about exactly the chance to reduce IHT payable and so HMRC would be interested that any Deed of Variation is drawn up properly!
Dod