Deeds of Variation: what they can and can’t do
Last verified: 5 November 2025 (England & Wales)When someone dies, families sometimes find that the Will or intestacy no longer fits today’s realities. A Deed of Variation enables a beneficiary to redirect their inheritance, ensuring the outcome aligns with the family’s objectives. It is optional, consensual, and time-limited.
Quick-read summary
A Deed of Variation is a written agreement that a beneficiary signs to pass some or all of their inheritance to someone else or into a trust. It must be completed within two years of death. Anyone who loses value must agree and have capacity. It cannot rewrite the whole Will, change executors or guardians, or be used to avoid debts or valid claims. Where the deed includes the correct tax statements, tax can follow the new destination as if the Will or intestacy had said it that way.
What a Deed of Variation does
A beneficiary can redirect part of what they receive to another person, to charity, or into a suitable trust. This can balance shares, include a new family member, or support long-term planning without the need for court proceedings. Executors are not usually parties unless their own entitlement changes or tax is directly affected.
Key rules
• Time limit: complete within two years of death.
• Consent: anyone whose share reduces must agree and have capacity.
• Minors and people who lack capacity cannot consent for themselves; court or deputy approval may be required.
• Form: set out clearly what is being varied and where it is going; include the IHT and CGT statements if tax read-back is intended.
• HMRC notice: only needed if IHT increases, and then within six months of making the deed.
What they can do
• Redirect an inheritance to another person, a charity, or into an appropriate trust.
• Rebalance gifts to reflect changed family circumstances.
• Help use allowances or reliefs that would otherwise be missed.
What they can’t do
• Rewrite the Will as a whole or increase your own entitlement.
• Change executors or guardians.
• Defeat creditors or valid family-provision claims.
• Proceed without consent from every beneficiary who is giving up value.
• Be unwound once correctly executed and relied upon.
Planning point
A Deed of Variation is not a substitute for well-drafted Wills or joined-up planning. Treat it as a safety valve when circumstances move beyond what could reasonably have been foreseen, not as a way to fix weak drafting after the event.
How this works in practice
• A child who inherits a cash gift redirects part of it to a grandchild born after the Will was signed, so shares reflect today’s family.
• Siblings route part of their inheritance into a discretionary trust to manage timing for younger beneficiaries and to protect value.
• A beneficiary gives a portion to charity. If the estate meets the 10 per cent test overall, the IHT rate may reduce from 40 per cent to 36 per cent.
Practical checklist
• Confirm the date of death and the two-year deadline.
• Identify who must consent and whether court or deputy approval is needed.
• Define exactly what is being varied and the destination, including any trust details.
• Add the correct IHT and CGT statements if you want a read-back.
• Keep copies of the probate papers and notify affected parties.
Best practice
• Mirror the wording of the original gift so the varied share is easy to trace.
• Keep the deed proportionate. Vary only what needs to change.
• Coordinate with any letters of wishes and the wider family plan.
• Take advice where business assets, reliefs, or trusts are involved.
Optional technical notes
• IHT read-back: If the deed states it is to take effect for Inheritance Tax under section 142 of the Inheritance Tax Act 1984, HMRC can treat the redirected gift as made by the deceased. Timing is within two years of death and the statement must be in the deed.
• CGT treatment: If the deed states that section 62(6) of the Taxation of Chargeable Gains Act 1992 applies, the redirection is treated as made by the deceased for CGT, provided no consideration in money or money’s worth is given.
• HMRC notification: Only required if the variation increases IHT, and must be sent within six months of making the deed.
• Capacity and minors: A person who lacks capacity cannot consent to give up value. A minor’s entitlement cannot be reduced without appropriate approval.
FAQs
Do executors have to agree?
Not usually. The people giving up value sign. Executors may be involved where their own entitlement changes or where tax is directly affected.
Can a deed fix a drafting error?
It can redirect outcomes by agreement, which often solves the practical issue. It does not correct the wording of the original Will.
Can I vary a minor’s gift?
Not without approval. A minor cannot consent to give up value. Court or deputy processes apply.
Is there a maximum number of variations?
No fixed limit, but each deed must meet the two-year rule and consent requirements.
Sources & further reading
• HMRC Inheritance Tax Manual — Instruments of Variation overview
• GOV.UK — Change a will after a death
• HMRC Capital Gains Manual — Variations under TCGA 1992 s62(6)
• HMRC IOV2 checklist — pre-signing compliance check
• Law Society — Deeds of variation and disclaimers
Next steps
If a Deed of Variation might help, ask for two example dates and times for a short call. We will confirm whether it fits, who must consent, the tax statements to include, and the simplest route to complete it.
