Deed of Variation
Your inherited wealth may be at risk!
Deeds of Variation
What is a Deed of Variation?
A Deed of Variation can also be referred to as an Instrument of Variation, a Family Arrangement, a Deed of Surrender, or a Deed of Assignment. In a nutshell, a Deed of Variation changes a Will after death and enables the beneficiaries of a deceased’s estate to alter the distribution of that estate, or relinquish a bequest from an estate, by changing the deceased’s Will.
When can a Deed of Variation be used?
A Deed of Variation can be drafted up to two years after the date of death.
Varying the way the assets are distributed by the Will with a Deed of Variation, can ensure that your new found wealth is protected.
Why Use a Deed of Variation?
There are many reasons why it may be desirable to amend the will of a deceased, or indeed an Intestacy.
The main reason for using a Deed of Variation is to ensure that the assets are passed to a beneficiary and are protected for generations to come from threats such as...
If your children / chosen beneficiaries are subject to divorce proceedings then half of what you intended them to receive is at risk to divorce settlements.
Long-Term Care Fees
If the inheritance has been passed to your chosen beneficiaries absolutely, then these assets could later be assessed for their own care costs.
Creditors and Bankruptcy
Similarly, if any of your beneficiaries are subject to creditor claims or bankruptcy, then the inherited estate is fully at risk.
Assets inherited from a Will directly, or “absolutely” as it is known will add to the beneficiaries’ estate and impact on their own Inheritance Tax.
Marriage after Death
On first death, all the assets are then solely owned by the surviving spouse/partner. If the surviving spouse/partner later remarries, then the inherited estate could be lost to the new spouse, disinheriting your children.
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Deed of Variation