How Much Does A Deed Of Variation Cost?
A deed of variation is a legal document that allows the beneficiaries that are named in a will to make changes to how the estate is distributed.
It also allows beneficiaries to add new beneficiaries to an estate as well as alter the distribution between themselves.
There are several reasons why you might wish to do so, whether it’s due to a loved one passing away having not updated their will in a significant amount of time or if you feel as though someone has been missed from the estate.
What Are The Benefits Of A Deed Of Variation?
A deed of variation allows beneficiaries to alter the will after the death of a loved one, which could be for a variety of reasons.
Perhaps a close friend has cared for your loved one or maybe the estate has been divided between two children when there’s a third child.
There are other benefits to a deed of variation aside from resolving issues with the distribution of the estate, though.
For example, you could receive a lower tax bill.
That’s because a deed of variation can result in a lower tax bill if it reduces the amount of the estate that is liable for inheritance tax (IHT).
IHT is payable at 40% of any estate worth over £325,000, although it’s only payable on anything over and above the £325,000 threshold. So, if the beneficiaries were to create a new beneficiary or gift a certain amount to charity, this could reduce the total amount of IHT you’re liable for.
You can create a deed of variation at any time before OR after a grant of probate is issued, but if you want it to have an effect on your IHT or capital gains tax (CGT) liability, then you’ll need to make it within two years of your loved one passing away.
A deed of variation must:
- Be signed by all beneficiaries who might lose out due to any changes
- State which parts of the estate are being changed
- State who will benefit from any changes
- Be provided in writing
There are also strict rules on who can be beneficiaries, with all beneficiaries required to be 18 or over. They must also agree to the changes, and no existing beneficiary who adjusts their share is allowed to be compensated for doing so.
If the deed of variation will affect children or unborn children, you’ll need to get approval from the court before it is legally binding.
A deed of variation can also be used under intestacy rules – so, if you are a beneficiary following a loved one dying without a valid will, you can use a deed of variation to alter the will after they have died.
Deed Of Variation Cost
The cost of a deed of variation will depend on how complicated the process is, the fees charged by your solicitor, and whether or not it requires court approval.
While each case is different, you can expect to pay anything from £500-£1,250 + VAT for the simplest deed of variation when you factor in the various legal costs.
The reality is that if there is further negotiation required or if there are any disputes relating to the estate, the process may become more complicated and time-consuming…
This will also mean the fees are likely to be higher.
Finding A Deed Of Variation Solicitor Near Me
Choosing a solicitor to handle your deed of variation, will, and any aspects of later life matters is an important decision.
The good news is that at Solicitors Near Me, we’re on hand to help you with your deed of variation requirements – as well as any other legal matters relating to wills and estates.
We’ll connect you with an expert solicitor near where you live FREE of charge.
All of our solicitors are hand-selected to be the best at what they do, so you can be assured of a high quality, personal service.
To find a deed of variation, will or probate solicitor near you, simply click the button below, enter a few details and we will soon connect you with a solicitor for FREE.