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Deeds Of Variation Solicitors

What is a Deed of Variation ?
Why would I do this?
Why is a Trust better than me having the money outright?
Are there any disadvantages?
How long does it take?
How much does it cost?

An example;

Mary and David Jones both die leaving their only son Bill £325,000. Bill and his wife Jane are already retired and they have a house worth £450,000 and savings and investments of £200,000. Their children Thomas and Rachel are both married, working hard, have young children, large mortgages and no spare money.

Bill spends £1,260 plus VAT with us to do a Deed of Variation setting up a flexible Discretionary Trust naming himself, his wife, his two children and his grandchildren as potential beneficiaries.

Jane dies and then Bill dies. The £325,000 in the Trust created by the Deed of Variation is not included in Bill’s estate for tax thereby saving £130,000 in inheritance tax.

Bill and Jane had enjoyed the Trust while they were alive and now with the tax saving Thomas and Rachel can each reduce their mortgages by £65,000. Thank you Dad.

For more information take a look out our Deed of Variation blog or contact one of our experienced solicitors today.