The beneficiaries of a will may wish to alter the terms of the will, using a ‘deed of variation’ if, for example:
- The will wasn’t updated to include a new beneficiary that would clearly otherwise have been intended to be a beneficiary, for example a newly born grandchild that wasn’t included.
- To exclude someone who decides that they don’t want or need to be included e.g., because they are wealthy.
- To adjust proportions in the will to different people, perhaps depending on their different financial circumstances or requirements.
- To skip generations e.g., to avoid or defer inheritance tax.
- To adjust the percent given to charity, in order to benefit from the reduced rate of inheritance tax.
All beneficiaries must agree unanimously to make the change. Some barriers include:
- Where there are beneficiaries who are minors or vulnerable persons who may not be able to consent.
- Where there are institutional beneficiaries such as charities who may not be able to consent.
- Where the will is unclear or ambiguous.
It will always be necessary to execute a deed of variation through a lawyer, and it is important to seek independent legal advice – preferably independent from even your financial advisor – to understand the consequences. Beneficiaries might even wish to consult their own lawyers separately from the other beneficiaries.
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