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Understanding the deed
Q:
Please could you give me some general information on deeds of variation. What are the regulations governing the procedure? Must a solicitor be used or can anyone who is probate himself arrange it, as long as all parties and whoever else has to be informed of the decision made are told.
P Briggs, Oxford
A:
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.
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The limitations of nominees
8 August 2008 [0 comments]Q:
Having read various pieces in your magazine at different times regarding the merits and demerits of certificated and nominee share dealing, it seems to me that certain advantages of holding certificates have been missed.
Indeed, I recently attended an Alliance Trust Roadshow and sat on a ‘shareholder club’ discussion group, where I was amazed to find, among a fairly sophisticated bunch of investors, such a lack of appreciation as to the shareholder rights one loses with a nominee account.
As an extra thread, I also recently attended the AGM of an investment trust in Edinburgh. As a trustee to my grandchildren’s funds, my name was missing from the list at reception. I was told that I was welcome to the meeting as long as I didn’t participate in the voting.
I was further informed that had I informed the plan managers of the trusts beforehand, I could have voted. It occurred to me that nominee shareholders may well find that if they feel strongly about an issue, they might be able to exercise their voting rights in a similar way. I would be interested in your panel’s thoughts on this subject.
Bev Wilkinson
via email
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