Deed of Variation – passing on money to your children

 

Deed of Variation – passing on money to your children

A Deed of Variation allows you as a beneficiary to amend or alter the will in question for a range of reasons – should all other beneficiaries agree to the changes you wish to be made.

 

A newspaper recently printed a case whereby a mother stood to inherit £16,000 and wanted instead to give it to her son, who was buying a home and, like many young people, was hoping for financial assistance. 

 

The woman was advised that a Deed of Variation would allow her to request that the money be passed to her son, rather than to her, allowing her to help him with the property purchase. 

 

This would also then mean that the £16,000 would never form part of the parents’ estate and so would not attract inheritance tax liability.

 

This is an excellent example of how an unexpected inheritance can cause problems in the long run for some beneficiaries – and how best to plan its usage so that any potential inheritance tax challenges can be overcome.

 

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