As a professional, I know how important it is to create content that stands out in search engine results. One topic that is gaining a lot of attention in the legal world is the deed of variation or variation agreement. These legal documents are used to alter the terms of a will after someone has passed away. In this article, we`ll explore what a deed of variation is, when it might be used, and what steps are involved in the process.
What is a Deed of Variation?
Also called a variation agreement, a deed of variation is a legal document used to change the distribution of property or assets outlined in a will. The document is signed by the beneficiaries of the original will and must be created within two years of the deceased`s passing. The deed of variation must also adhere to certain tax rules, including inheritance tax and capital gains tax.
Why Use a Deed of Variation?
There are many reasons why someone might choose to alter the terms of a will using a deed of variation. One common reason is to address unforeseen circumstances that were not accounted for in the original will. For example, if a beneficiary dies before the person who created the will, their share of the estate might need to be redistributed.
Another reason to use a deed of variation is to minimize taxes. If the distribution of an estate outlined in a will would result in a significant tax burden, beneficiaries might choose to alter the terms of the will to reduce the amount owed.
The Process of Creating a Deed of Variation
Creating a deed of variation involves several steps. The first step is to seek advice from a solicitor or other legal professional. They can help you understand the tax implications of altering the original will and guide you through the process of creating the document.
Once the deed of variation is created, it must be signed by all beneficiaries of the original will. It`s important to note that any changes made through a deed of variation cannot be changed again by the beneficiaries.
When the deed of variation is complete, it must be submitted to HM Revenue & Customs. The document must be filed within two years of the deceased`s passing to be valid.
Conclusion
A deed of variation or variation agreement can be a valuable tool for altering the terms of a will after someone has passed away. These legal documents can be used to address unforeseen circumstances or minimize tax burdens. If you`re considering using a deed of variation, be sure to seek the advice of a legal professional who can guide you through the process and ensure that the document adheres to all tax rules and regulations.