Is the end of Deeds of Variation in sight?
A Deed of Variation is a very useful document that allows beneficiaries of a will or intestacy to vary the terms of a will or an intestate estate with relevant consents for up to two years after the date of death of a Testator, with no tax penalty.
It is a particularly useful tool in Inheritance Tax (IHT) planning – ask Ed Milliband!
The Chancellor in today’s Budget has announced that the use of Deeds of Variation is to be reviewed. Whilst, the result of this review cannot obviously be known, it certainly makes clear that there is a threat to the ongoing use of Deeds of Variation.
What can you do ?
If you are dealing with an estate in which the testator has died within the last 2 years, it is probably better to get on and complete any Deed of Variation required, sooner rather than later.
Alternatively, it makes it more important that you make a tax efficient will during your lifetime, as the opportunity for your beneficiaries to make tax-saving amendments after your death may no longer be available.
At Solomons Solicitors, we have the specialist lawyers able to assist you with any questions that you may have regarding Deeds of Variation and IHT tax planning.
Please contact us on 01202 802807 or firstname.lastname@example.org for further information.