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.

Change how assets are shared

Reduce or reclaim Inheritance Tax (IHT)

Provide for family members or charities

Create a trust for long-term protection

Must be completed within 2 years of the date of death to qualify for tax benefits.

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?

Simple deeds: a few weeks (via your solicitor)

More complex estates/trusts: a few months

Trust account opening: 2–8 weeks depending on paperwork and complexity

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:

Trustees are appointed in the deed

An Investment Managed Trust Account is opened in the trust’s name

Our trusted Investment Manager provides:

Hands on investment management on behalf of the trustees

Quarterly valuations, review and analysis

Facilitates withdrawals and payments as directed with the trustee’s approval

How Long Does It Take to Open a Trust Account?

Standard setup: 2–4 weeks

Complex cases: 6–8 weeks or more (e.g. multiple trustees, international beneficiaries)

Trusts are governed by:

The Deed of Variation

Sets out who benefits and how

Trustee law (Trustee Act 2000)

Trustees must act fairly, invest wisely, and keep records

HMRC regulations

Trusts often need to be registered and may have annual tax filings

Our investment manager handles day-to-day investments and reporting, while trustees remain in full control.

Why Choose Us?

Clear guidance on the Deed of Variation process
Trusted solicitor recommendations for drafting
Fast-tracked trust account setup with our investment manager
Ongoing support for trustees and beneficiaries

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

It is a legal document that allows beneficiaries to change how an inheritance is distributed after someone has died.

Yes. If the variation reduces the tax bill (for example, by passing assets to a spouse or charity), HMRC will refund any overpayment.

Only the beneficiaries giving up or redirecting their inheritance need to sign. Others do not need to be involved.

No, unless approved by the court. Variations for under-18s or those lacking mental capacity require legal approval.

Yes, it is strongly recommended. A solicitor ensures the deed is valid, HMRC-compliant, and avoids costly mistakes.

Simple deeds may take a few weeks, while complex cases or trust setups can take several months.

Related Services

UK Shares Sales and Transfers

International Shares Sales and Transfers

Probate/ IHT Share Valuations

Share Certificate & Nominee Services

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