Q&As

A dies and leaves their estate to his children. A is the sole beneficiary of B's estate which is yet to be distributed. A’s estate is subject to inheritance tax and their executors would like to enter into a deed of variation for B’s estate so that the inheritance due to A does not fall into their estate but instead passes from B’s estate direct to A’s children. Can A’s executors enter into this deed of variation or would they need court approval on behalf of the minor’s as they are the ultimate beneficiaries of A’s estate?

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Produced in partnership with Camilla Bishop of Keystone Law
Published on: 28 April 2022
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We have assumed that:

  1. •

    A and B were not married and so the transferable nil rate band is not available

  2. •

    B died less than two years ago

Before answering the question, it is worth exploring how the proposed Deed of variation will save IHT—if A and B were married then spouse exemption will apply and B’s available nil rate band will transfer to A’s estate in any event. Only if they were not married or there are transferable

Camilla Bishop
Camilla Bishop

Partner, Keystone Law

Camilla is an experienced lawyer who specialises in all aspects of estate planning with a particular focus on Inheritance Tax. As an expert in will drafting and the use of trusts along with trust administration, she provides practical tax-efficient solutions and deals with everything from everyday family needs to the very complex.
 
Camilla is experienced in estate administration and probate, advising on reliefs and exemptions (including Business Relief and Agricultural Relief) and post-death planning using deeds of variation.

Camilla’s expertise also extends to assisting elderly and vulnerable clients with lasting powers of attorney, deputyship applications and other Court of Protection matters.

Camilla is a full member of the Society of Trust & Estate Practitioners (STEP) and is on the committee of STEP Sussex. She regularly writes topical articles and gives webinars/seminars on estate planning to a wide audience of financial advisers and accountants and is well recognised for complementing the services they offer with a joined-up approach for mutual clients.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Beneficiary definition
What does Beneficiary mean?

A person who has a interest'>beneficial interest in property under a trust.

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