As a forward-thinking entrepreneur with an eye on the future, securing your family’s financial well-being while ensuring the smooth transition and management of your assets is crucial. A Deed of Variation can be an essential tool for accomplishing these goals.
But what exactly is a Deed of Variation, and how can it benefit you and your family?
Understanding a Deed of Variation
A Deed of Variation is a legal document that allows beneficiaries of a deceased person’s Will to make changes to the distribution of the estate.
This can be a vital mechanism if the Will does not align with the beneficiaries’ current needs or financial objectives.
Unlike rewriting a Will, which can only be done by the testator (the person who made the Will), a Deed of Variation permits adjustments posthumously, typically within two years of the death.
Why Would You Need a Deed of Variation?
There are several reasons you might consider a Deed of Variation:
- Tax Efficiency: Effective use of a Deed of Variation can minimise the amount of Inheritance Tax payable by redirecting assets in a more tax-efficient manner.
- Family Circumstances: Family dynamics and needs can change. A Deed of Variation allows the beneficiaries to redistribute assets to better meet these new circumstances.
- Fairness and Equity: Sometimes, the original Will might not seem fair in hindsight, especially if family circumstances have changed significantly since it was written.
- Preserving Family Wealth: By redirecting assets, you can ensure that wealth is put to the best possible use, perhaps by funding trusts for grandchildren or supporting family members in need.
How a Deed of Variation Works
A Deed of Variation must be agreed upon by all beneficiaries who would be affected by the changes. It must be legally documented and signed, often with the guidance of a legal professional to ensure compliance with all relevant laws and regulations.
Additionally, if any variations affect the amount of tax payable, HMRC must be notified.
The Benefits for Entrepreneur and Business-minded Individuals
For Entrepreneur and Business-minded individuals, a Deed of Variation can offer peace of mind and financial security, aligning with their core values of protecting their family’s future:
- Flexibility: The ability to adapt the distribution of assets to fit the current financial landscape and family needs.
- Control: Ensures that their hard-earned wealth is managed and utilised as intended, safeguarding their legacy.
- Strategic Advantage: Minimises potential tax liabilities and maximises the financial impact, fostering continued growth and stability.
Your Next Step
As the pillars of your family and business, understand that prudent financial planning is paramount for long-term success.
If you want to explore how a Deed of Variation can benefit your estate planning, contact The Legacy Wills Company today.
Our specialists have over 25 years of experience in Estate Planning and Independent Financial Advisory. We offer personalised, tax-efficient estate planning strategies that ensure your wealth is protected and your family’s future is secured.
Call us on 0208 547 2583 or email us at enquiries@legacy-wills.co.uk to book a discovery call with one of our expert advisors. Secure your legacy and ensure your loved ones are well taken care of, today and for generations to come.