Deed of Variation — Changing a Will After Someone Has Died

When someone dies, their will sets out who inherits. But sometimes the beneficiaries agree the estate should be shared differently. A deed of variation lets them redirect a gift after death, without rewriting the will itself.

We advise families across England and Wales on deeds of variation every year. Some want to reduce inheritance tax. Others want to help a grandchild, skip a generation, or put right a family arrangement the deceased did not live long enough to update. Whatever the reason, a variation is a serious legal step and it must be done properly.

This guide explains how a deed of variation works, when it can be used, and what to think about before you sign one.

What is a deed of variation?

A deed of variation is a formal document signed by a beneficiary. It changes who receives a gift from the estate of someone who has died. In practice it works as if the deceased had left that gift to the new recipient in the first place.

The variation does not change the will itself. The will remains the legal starting point. The deed sits alongside it and redirects specific gifts, shares of residue, or entitlements under intestacy.

For inheritance tax and capital gains tax purposes, a valid variation is treated as though the deceased made the gift. That read-back is one of the most powerful features of the tool and one of the main reasons families use it.

When can a deed of variation be used?

A variation can be used whether the deceased left a will or died intestate. It can redirect a specific legacy, a share of residue, a right under the rules of intestacy, or an interest under a trust that arose on death.

The person giving up the inheritance must be an adult and have full mental capacity. If a child stands to benefit, court approval is usually needed because a child cannot give up rights on their own behalf.

Every beneficiary who is losing out must agree in writing. Executors and personal representatives do not need to consent unless the variation increases the inheritance tax due on the estate. In that case they must join in the deed.

The two-year rule and legal requirements

The deed must be signed within two years of the date of death. This deadline is strict. Miss it and the tax advantages fall away, although a private family rearrangement is still possible outside the tax rules.

It must be in writing and signed by everyone giving up their gift. It must clearly identify the will or intestacy provision being varied and the new destination of the gift. For inheritance tax and capital gains tax read-back, it must contain the correct statements referring to section 142 of the Inheritance Tax Act 1984 and section 62 of the Taxation of Chargeable Gains Act 1992.

Getting the wording right matters. HMRC publishes a helpful Instrument of Variation checklist that walks through the tests. A poorly drafted deed can fail the read-back rules and leave the family with an unexpected tax bill.

Inheritance tax and capital gains tax benefits

Inheritance tax is charged at 40% on estates above the available nil-rate band. The standard nil-rate band is £325,000. The residence nil-rate band is a further £175,000 where a home passes to direct descendants, tapering when the estate exceeds £2m.

A deed of variation can reduce inheritance tax in several ways. Redirecting a gift to a charity can attract charity exemption and, if enough goes to charity, the reduced 36% rate on the rest of the estate. Passing assets to a spouse or civil partner uses the spouse exemption. Moving assets into a trust for younger family members can help with generational planning.

For capital gains tax, the read-back can also help. Without a variation, a beneficiary who gifts on an asset may trigger a chargeable gain. With a properly worded deed, the asset is treated as passing directly from the estate and the base cost is reset to the value at death. HMRC’s general guidance on inheritance tax is a good starting point for the wider framework.

Common reasons to vary a will

Families use deeds of variation for many reasons. Some are about tax. Many are about fairness, timing or family circumstances that have changed since the will was written.

Skipping a generation is common. An adult child with a comfortable estate of their own may prefer their inheritance to pass to their own children instead. That avoids the gift being taxed twice as it moves down the family.

Correcting an oversight is another. A will drafted years ago may have missed a grandchild born later, or a partner who was never married. A variation lets the family put things back in balance. It can also help resolve a dispute without going to court, as part of a wider settlement in a contested estate.

Charitable giving is a further reason. Directing part of the estate to a charity honours the deceased’s wishes and can also reduce the inheritance tax bill for the wider family.

What if there is no will?

A deed of variation is not only for estates with a will. Where someone has died intestate, the rules of intestacy decide who inherits. Those rules can produce outcomes the family would not have chosen.

Beneficiaries under intestacy can vary their entitlement in exactly the same way. The deed redirects the share, and the read-back rules apply if it is signed within two years and correctly drafted. This is often useful where the intestacy rules leave everything to a surviving spouse when the family would prefer part of the estate to go to the children.

Our guide to the rules of intestacy explains the default distribution and how variations fit alongside it.

Risks and pitfalls to consider

A deed of variation is not to be signed lightly. Once made, it is generally irrevocable. The beneficiary giving up their gift cannot change their mind later.

Means-tested benefits are a real concern. If someone receiving benefits redirects an inheritance to another family member, the Department for Work and Pensions may treat that as deprivation of capital. That can affect entitlement to universal credit, pension credit or care fee funding.

Trustees in bankruptcy can also unwind a variation made by a bankrupt beneficiary. Anyone in financial difficulty should take advice before signing anything.

Finally, the paperwork must be right. HMRC will look closely at the wording. Missing declarations or vague drafting can defeat the tax benefits. If executors need to report a variation, they must send a copy to HMRC within six months of the deed. Working with a solicitor who deals with probate every day gives the family the best chance of a clean result. Our wider notes on estate administration set out the full journey.

How Curtis Legal can help

We deal with deeds of variation as part of everyday estate administration. Our approach is practical. We start by listening to what the family wants to achieve, then we sense-check the tax position, the timing and the effect on any other beneficiaries.

We draft the deed to meet the HMRC read-back requirements and we make sure every signature and declaration is in place. Where children or protected parties are involved, we advise on whether court approval is needed and coordinate any application. Where the estate is complex we work alongside your accountant so the tax reporting is joined up.

Applying for the grant of probate itself now costs £526 from 13 July 2026. That is separate from the variation, but the two often run in parallel and we make sure the sequencing works for the family.

If you are thinking about a deed of variation, speak to us before anything is signed. Call Curtis Legal on 0800 214 216 for a same-day callback with our probate team. We will explain the options, the tax position and the timings in plain English so you can make the right decision for your family.