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Will Variations

• The Inheritance Tax Act 1984 enables beneficiaries under a will or on intestacy to change the split of the deceased's estate as directed by the will or intestacy rules.

• So although we talk of varying a will, this is not in fact the case, the relevant sections of the Act merely override the will or intestacy rules.

• Section 142 or the Act makes two important points:-

1. The change must be made within two years of death, and

2. The required changes must be by 'an instrument in writing' which, whilst usually taken to be a deed, need not necessarily be so.

• It is necessary to notify the Revenue, currently the Capital Taxes Office, in writing within six months of the date of the 'instrument', otherwise the variation will not be recognised.

• No beneficiary should have had 'enjoyment' of the property subject to a variation between the date of death and the date of the deed. Otherwise they will be treated as having made a transfer for IHT purposes if they subsequently relinquish their interest.

REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.