Deed of Variation
What is a Deed of Variation?
A Deed of Variation is a legal document that allows beneficiaries to change how an inheritance is distributed after someone has died. In practice, it can balance inheritances, provide for loved ones or charities, and, in some cases, reduce the overall tax burden.
What if Inheritance Tax has already been paid?
In many cases, this is not a problem. If your variation reduces the IHT bill (for example, by redirecting money to a spouse or charity), HMRC will refund the overpayment. A solicitor will prepare the legal paperwork, and afterwards we will help guide you on what happens next with the funds.
Who Can Set One Up?
Beneficiaries redistributing assets
Any beneficiary who wants to redirect or reduce their inheritance must agree to the deed.
Other beneficiaries
Those not affected by the change do not need to sign or be involved.
Important: A deed cannot be used for under-18s or those without mental capacity (unless approved by the court). Therefore, while not everyone needs to sign, those who are changing their inheritance must always give consent.
Who Prepares the Paperwork?
We don’t draft deeds ourselves. Instead, we recommend you work with a qualified solicitor to ensure the deed is valid and HMRC-compliant.
While simple deeds can be done without a solicitor, professional drafting ensures HMRC compliance and avoids costly mistakes.
Once the deed is in place, we step in to assist with trust account setup and management.
How Long Does It Take?
Creating a Trust with a Deed of Variation
Many families choose to redirect inheritances into a trust. This helps protect assets, manage tax, and provide for loved ones over time.
Opening a Investment Managed Trust Account
Once your solicitor has drafted the deed, we make the next step straightforward:
How Long Does It Take to Open a Trust Account?
Trusts are governed by:
Our investment manager handles day-to-day investments and reporting, while trustees remain in full control.
Why Choose Us?
Take Control of Your Inheritance
Don’t let tax rules or outdated wills decide how your family’s wealth is managed.
Contact us today to learn how a Deed of Variation and trust account could protect your family’s future.
FAQ
What is a Deed of Variation?
It is a legal document that allows beneficiaries to change how an inheritance is distributed after someone has died.
Can Inheritance Tax be refunded after a Deed of Variation?
Yes. If the variation reduces the tax bill (for example, by passing assets to a spouse or charity), HMRC will refund any overpayment.
Who needs to agree to a Deed of Variation?
Only the beneficiaries giving up or redirecting their inheritance need to sign. Others do not need to be involved.
Can a Deed of Variation be set up for children or vulnerable adults?
No, unless approved by the court. Variations for under-18s or those lacking mental capacity require legal approval.
Do I need a solicitor to prepare a Deed of Variation?
Yes, it is strongly recommended. A solicitor ensures the deed is valid, HMRC-compliant, and avoids costly mistakes.
How long does a Deed of Variation take?
Simple deeds may take a few weeks, while complex cases or trust setups can take several months.