Leonie Kerswill replies:
A deed of variation can be used where individuals who have an entitlement under a will don’t wish to retain their entitlement and instead want to pass it on to someone else.

To be valid, the deed of variation must be made within two years after the date of death by an instrument in writing that is signed by the people who benefit or would benefit from the gifts. If a variation increases the amount of inheritance tax due, the executors must also agree and sign the variation, which must be submitted to HM Revenue & Customs. While the variation does not have to be by way of a formal deed drawn up by a solicitor – in fact, it is possible that in some cases a simple letter will be enough – it is generally advisable to seek specialist advice, particularly where the amounts concerned are significant or where land or property is involved.

In order for it to be effective for inheritance tax and capital gains tax purposes (or for one or other of them alone) the deed of variation must be deemed to have been made by the deceased. Therefore, in addition to all of the above, the deed must actually contain a statement to that effect.