Deed of Variation After Death: What UK Families Need to Know

What Is a Deed of Variation?

A deed of variation — sometimes called a deed of family arrangement — is a legal document that allows beneficiaries of a will (or of the intestacy rules) to redirect their inheritance to someone else. In effect, it lets you change the outcome of a will after someone has died, as if the deceased person had written the will differently in the first place.

This might sound unusual, but it is a well-established part of UK law and is used more commonly than many people realise. It can be a practical and generous tool for families navigating a bereavement, and in some cases it can also reduce the overall inheritance tax burden on an estate.

Why Would You Use a Deed of Variation?

There are several reasons why a beneficiary might choose to redirect their inheritance:

• To provide for someone who was left out of the will. Perhaps a grandchild was born after the will was written, or a family member in financial difficulty was not included.
• To reduce inheritance tax. If a beneficiary redirects assets to a spouse, a charity, or into a trust, this can reduce or eliminate the inheritance tax payable on that portion of the estate.
• To correct something the deceased might have changed. If the will was written many years ago and circumstances have changed, a deed of variation allows the family to adjust things in a way they believe the deceased would have wanted.
• To pass assets to the next generation. An adult child who does not need the inheritance might redirect it to their own children, potentially reducing future inheritance tax liabilities.
• To equalise things between family members. If the will left unequal shares and the family prefers an equal split, a deed of variation can achieve this.

The Legal Requirements

For a deed of variation to be valid and recognised by HMRC for tax purposes, it must meet several conditions:

• It must be made within two years of the death. This is a strict deadline — there are no extensions.
• It must be in writing. A verbal agreement is not sufficient.
• The person redirecting the inheritance must be aged 18 or over and must consent freely. You cannot be pressured into signing a deed of variation.
• It must clearly identify the original will provision being varied and state what the new arrangement will be.
• If the variation is intended to have inheritance tax or capital gains tax effect, it must include a statement to that effect under section 142 of the Inheritance Tax Act 1984 (and, if relevant, section 62(6) of the Taxation of Chargeable Gains Act 1992).

It is important to note that only the person who stands to inherit can vary their share. You cannot force another beneficiary to redirect their portion of the inheritance.

How a Deed of Variation Affects Inheritance Tax

One of the most common uses of a deed of variation is to reduce the inheritance tax payable on an estate. Here are some examples of how this might work:

Redirecting to a spouse or civil partner. Transfers between spouses and civil partners are exempt from inheritance tax. If the will leaves assets to adult children but the surviving spouse would benefit more from those assets, the children can redirect their inheritance to the surviving parent, and no inheritance tax will be payable on that redirected amount.

Redirecting to charity. Gifts to registered charities are exempt from inheritance tax. If beneficiaries redirect part of the estate to charity, this reduces the taxable estate. If at least 10% of the net estate is left to charity, the inheritance tax rate on the remaining estate drops from 40% to 36%.

Redirecting into a trust. In some circumstances, redirecting assets into a trust (for example, for the benefit of minor children or vulnerable beneficiaries) can be tax-efficient, although this is more complex and professional advice is strongly recommended.

Do You Need a Solicitor?

While there is no legal requirement to use a solicitor, a deed of variation is a legal document with potentially significant tax implications. Getting it wrong could mean the variation is not recognised by HMRC, or could create unintended tax consequences.

In straightforward cases — for example, redirecting a cash legacy from one family member to another — the document itself is relatively simple. However, if the variation involves property, trusts, or significant sums, professional legal advice is well worth the cost.

You should expect to pay somewhere between £200 and £1,000 for a solicitor to draft a deed of variation, depending on complexity. Some solicitors offer fixed-fee packages for simpler cases.

Common Misconceptions

"You can only use a deed of variation if there is a will." This is not true. Deeds of variation can also be used when someone dies intestate (without a will). The beneficiaries under the intestacy rules can redirect their entitlement just as they would under a will.

"A deed of variation means you are changing the will." Not exactly. The will itself remains unchanged. A deed of variation is a separate legal document that redirects what happens to specific assets or legacies. For tax purposes, however, HMRC treats it as if the will had originally been written that way.

"Everyone in the family has to agree." Only the beneficiary whose share is being varied needs to consent. Other beneficiaries do not need to agree, provided their entitlement is not affected.

"You lose control of the assets once you sign." Yes — a deed of variation is irrevocable once signed by all relevant parties. You cannot change your mind later. This is why careful thought and professional advice are important before proceeding.

The Two-Year Window

The two-year deadline from the date of death is absolute. If you are considering a deed of variation, it is wise to start discussions early. Estate administration can be slow, and the two-year window can pass more quickly than you expect — especially if probate is delayed.

If you are managing an estate and juggling many tasks at once, keeping track of important deadlines like this is essential. Tools like GetPassage can help you stay on top of the timeline so you do not miss critical dates.

Key Takeaways

A deed of variation is a flexible and powerful tool that can help families arrange their affairs in a way that better reflects their needs and wishes after a bereavement. Whether it is about providing for someone who was overlooked, reducing an inheritance tax bill, or simply making things fairer among family members, it is an option worth knowing about.

If you think a deed of variation might be appropriate for your situation, speak to a solicitor sooner rather than later — that two-year clock starts ticking from the date of death, and you will want to leave yourself plenty of time.