Deeds of Variation: What They Can (and Can’t) Do

By Chris Watts, Will Writer – Fern Wills & LPAs

Last verified: 5 September 2025

Quick-read summary

A Deed of Variation lets a beneficiary redirect their share of an inheritance—if done within two years of death—to another person (or charity/trust), as though the asset was left initially that way. This can help with tax planning, family fairness, or estate structuring. But there are limits: deeds cannot rewrite wills, change executors or guardians, or be made without all affected beneficiaries’ consent.

It’s important to remember: a well-drafted, regularly reviewed will remains the best protection. Deeds of Variation are a helpful safety net where circumstances couldn’t reasonably have been foreseen. But they are no substitute for keeping your will up to date with your actual wishes. (At Fern Wills & LPAs, we recommend a Will MOT every 3–5 years or after any significant life event.)

Practical checklist

• Confirm you’re within two years of death before proceeding.
• Identify the assets and beneficiaries involved.
• Draft the variation to meet HMRC requirements so tax effects “read back” to the date of death.
• Ensure all affected beneficiaries agree and sign (and executors if tax changes).
• Notify HMRC only if the change increases inheritance tax.
• Take advice on whether redirected assets could affect benefits or tax consequences.

What they can do

• Redirect your whole or part of your inheritance to someone else, such as grandchildren, a charity, or into a trust.
• Reallocate assets to use unused Nil-Rate Bands (NRB/RNRB) or secure reliefs such as Business Property Relief.
• Include family members unintentionally left out, or adapt to changed family circumstances.
• Pass assets into trust for protection against divorce, care fees, or further IHT.
• Allow beneficiaries under intestacy to include someone otherwise excluded (e.g. an unmarried partner).

What they can’t do

• Rewrite the will — the original document stands; the deed only alters how inheritances are redirected.
• Increase your entitlement — you can only redistribute your share, not enlarge it.
• Change executors or guardians — the will or law fixes these roles.
• Proceed without consent — all affected beneficiaries must agree and have capacity.
• Be repeated — once correctly executed, the deed is final.

How this works in real life

Proactive flexibility for tax planning

A beneficiary inherited a property but wished to include a charitable gift and reduce overall IHT. With a properly drafted Deed of Variation, part of the property was redirected to charity, reducing the tax rate from 40% to 36%. Balancing family fairness

A will drafted many years earlier omitted a grandchild. With the agreement of all affected parties, a Deed of Variation redirected part of a beneficiary’s entitlement to the grandchild, achieving a fairer distribution without conflict.

FAQs

Can a Deed of Variation be challenged?

Yes. If capacity, consent, or understanding is in doubt, a deed can be disputed. Proper drafting and legal advice can help mitigate this risk. Does HMRC always need to be notified?

Only if the change increases the estate’s tax liability, if it reduces or leaves tax unchanged, no notification is required. Can it be used across the UK?

Yes. While probate procedures vary by jurisdiction, IHT rules and the two-year timeframe apply across England, Wales, Scotland and Northern Ireland. Is legal advice necessary?

Yes. Deeds must meet technical wording and tax rules. Professional drafting ensures validity and avoids mistakes.

Optional Technical Notes (for those who want the detail…)

• Tax “read back”: Correctly drafted deeds are treated by HMRC as if the deceased made the gift.
• Timing: Must be executed within two years of death.
• PET vs variation: Without a deed, passing on inheritance may be a Potentially Exempt Transfer (PET), triggering the 7-year rule. A deed avoids this by treating it as part of the estate distribution.

Sources & further reading

• GOV.UK – Alter a will after death (Deed of Variation)
• Unbiased.co.uk – What is a Deed of Variation and how does it work?
• NBS – Practical support: Deed of Variation
• Lexology – Deeds of Variation explained

Next steps

Deeds of Variation can be a valuable tool when circumstances change unexpectedly. But they are not a replacement for a will that truly reflects your wishes. At Fern Wills & LPAs, we help ensure wills match your current needs and recommend a regular Will MOT every three to five years or after significant life changes. If a Deed of Variation is being considered, we can provide introductions to trusted advisers who are qualified to advise on tax and draft the deed.