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Buachaill, Barrister
Category: UK Law
Satisfied Customers: 10595
Experience:  Barrister 17 years experience
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Deed of variation - A will has left money to a school and the

Customer Question

Deed of variation - A will has left money to a school and the school is not a charity. As such the legacy left will be subject to IHT. If a charity is now set up is it possible to use a deed of variation for the benefit (ie save IHT) of a beneficiary that did not exsist at the time of when the will was written?
Submitted: 2 years ago.
Category: UK Law
Expert:  Buachaill replied 2 years ago.
1. The main effect of a qualifying Deed of Variation is that the alterations made by it are treated for all Inheritance Tax purposes as having
been effected by the deceased person and not by the original beneficiary. Accordingly, it is not possible for a beneficiary under a Deed of Variation not to have existed at the date when the deceased died in order to avoid Inheritance Tax. You can seek Revenue guidance on this matter, but that is the legal position. The position is different for Income Tax where the date of the Deed of Variation is taken as the relevant date.