Deed of Variation UK (2026): How to Change a Will After Death and Save Inheritance Tax
Quick answer
A deed of variation lets beneficiaries redirect an inheritance within 2 years of the date of death. HMRC treats it as if the deceased had made the change — so the redirecting beneficiary does not start a new 7-year clock. It can be used to save IHT, pass assets to grandchildren, redirect to charity (to trigger the 36% rate), or correct an out-of-date will. Costs: £350–£1,250 + VAT in solicitor fees. No government fee.
What is a deed of variation?
A deed of variation (also called a deed of family arrangement or instrument of variation) is a legal document signed by one or more beneficiaries of an estate that changes how the estate is distributed — either away from what a will says, or away from what the intestacy rules provide.
The critical feature is the tax treatment. Under sections 142–144 of the Inheritance Tax Act 1984, if the deed contains the required elections and is made within 2 years of death, HMRC treats the variation as if the deceased had written it into their will. The redirected assets are not a gift from the beneficiary — they are treated as a direct transfer from the estate. This means:
- No new potentially exempt transfer (PET) for the redirecting beneficiary
- No 7-year clock starts
- The redirected assets do not count towards the beneficiary's own estate for IHT
The 2-year deadline
Strict 2-year time limit
The deed must be executed and signed within 2 years of the date of death for the IHT and CGT treatment to apply. The clock runs from the date of death — not from the date probate is granted, not from when assets are distributed. Miss the deadline and you lose all the tax benefits.
Who needs to sign a deed of variation?
| Who | Must sign? | Notes |
|---|---|---|
| Beneficiaries giving up or reducing their share | Yes | Every beneficiary whose entitlement is reduced must consent and sign |
| Beneficiaries whose share stays the same or increases | No | Uninvolved beneficiaries do not need to sign |
| Executors / administrators | Sometimes | If the variation affects IHT, executors usually countersign the HMRC election |
| HMRC | No — but an election must be included | The deed must contain a statement that s.142 IHTA 1984 is to apply |
| Minors (under 18) or people without mental capacity | Court approval required | Cannot consent on behalf of a child or incapacitated person without a court order |
Five ways a deed of variation saves inheritance tax
1. Skip a generation
If a child inherits from a parent, that inheritance joins the child's own estate — potentially taxed at 40% when the child dies. A deed of variation can redirect part of the inheritance directly to grandchildren now, removing it from the child's estate permanently. HMRC treats the transfer as if made from the grandparent, not as a gift from the child.
2. Use the 36% charity rate
If at least 10% of the net estate passes to charity, the IHT rate on the remainder drops from 40% to 36%. A deed of variation can be used to redirect assets to charity to hit the 10% threshold — saving 4% on the rest of the estate, which can easily outweigh the amount given to charity.
3. Maximise the nil-rate band
If a will was written years ago and the nil-rate band or residence nil-rate band was not fully used, a deed of variation can restructure the distribution to use available allowances. For example, redirecting assets between spouses or civil partners to use both nil-rate bands more efficiently.
4. Correct an out-of-date will
If the deceased's will was not updated after a divorce, a new child, or a major change in family circumstances, a deed of variation can correct what the will would have done if it had been updated. This is particularly useful when the will leaves everything to someone who has since died or divorced.
5. Provide for an excluded dependent
If a will failed to provide for a dependent who might bring an Inheritance Act 1975 claim, a deed of variation can include them voluntarily — avoiding litigation costs and family dispute, while still achieving better tax efficiency than a court order.
What a deed of variation cannot do
- Cannot override joint tenancy survivorship — if property was held as joint tenants, it passes automatically to the survivor outside the will. A deed of variation only affects assets that passed through the estate.
- Cannot involve assets that have already been distributed — once beneficiaries have received and spent their inheritance, there is nothing left to vary. Act before estate administration is complete.
- Cannot include minors without court approval — if a child under 18 would lose out under the variation, the court must approve. This is expensive and time-consuming.
- Does not override pension nominations — pensions pass by expression of wishes direct to the pension trustees, outside the estate. A deed of variation does not affect pension death benefits.
How much does a deed of variation cost?
| Complexity | Typical solicitor fee | What drives the cost |
|---|---|---|
| Simple (2 beneficiaries, cash only, no IHT) | £350–£600 + VAT | Basic drafting and signing |
| Standard (property or mixed assets, IHT election) | £600–£900 + VAT | HMRC election drafting, Land Registry notification |
| Complex (multiple beneficiaries, trusts, HMRC clearance) | £900–£1,250+ + VAT | Trust documentation, HMRC correspondence, potential court involvement |
| Minor or incapacitated beneficiary | £1,500–£3,000+ + VAT | Court of Protection or court approval required |
There is no government fee for a deed of variation — only professional costs. For estates where the IHT saving is significant, the solicitor fee is usually a fraction of the tax saved.
Deed of variation vs writing a new will
A deed of variation is a post-death tool — it can only be used after someone has died. It cannot substitute for a properly written will. The best outcome is always to have an up-to-date will that reflects your current wishes, so that beneficiaries are not forced into complex (and costly) post-death rearrangements.
If you are currently administering an estate where the will is out of date or the distribution seems unfair, contact a solicitor specialising in estate administration before distributing any assets. Once assets are distributed, the 2-year window still runs — but the practical ability to vary is lost.
The WillSafe UK Executor Guide (£25) includes a section on post-death options including deeds of variation, as part of the 12-month estate administration walkthrough.
Frequently asked questions
What is a deed of variation in the UK?▼
A deed of variation (also called a deed of family arrangement or instrument of variation) is a legal document signed by beneficiaries of an estate that redirects all or part of their inheritance to someone else. For inheritance tax purposes, HMRC treats the change as if the deceased had written it into their will — so the redirected assets do not trigger the 7-year rule for the redirecting beneficiary.
How long do I have to make a deed of variation after someone dies?▼
A deed of variation must be executed within 2 years of the date of death to have effect for inheritance tax and capital gains tax purposes. This is a strict deadline — miss it and you lose the tax benefits entirely. The 2-year clock runs from the date of death, not the date probate is granted.
Do all beneficiaries need to agree to a deed of variation?▼
Only beneficiaries who are giving up or reducing their share need to sign. Beneficiaries whose share is staying the same or increasing do not need to sign. However, all signatories must be over 18 and have mental capacity. If a minor would be affected, court approval is required — which adds cost and time.
How much does a deed of variation cost in the UK?▼
Solicitor fees for a deed of variation typically range from £350 to £1,250 plus VAT. Simple variations between two beneficiaries with no tax complications sit at the lower end. Complex estates with multiple beneficiaries, trusts, or HMRC clearance requirements cost more. A deed of variation has no government fee — only solicitor or legal service costs.
Can a deed of variation save inheritance tax?▼
Yes. A deed of variation can save IHT in several ways: redirecting assets to charity (reducing the IHT rate to 36% on the rest of the estate if 10%+ goes to charity); redirecting assets to use the deceased's nil-rate band more efficiently; passing assets to the next generation (skipping the children's estate); or redirecting into a trust. HMRC treats the variation as if made by the deceased, so no additional IHT arises on the redirected assets in the estate.
Can a deed of variation be used when there is no will (intestacy)?▼
Yes. A deed of variation can be used to vary either a will or the intestacy rules. If someone died without a will and the intestacy rules distributed their estate in a way that beneficiaries want to change, a deed of variation can redirect those entitlements within 2 years of death, with the same tax treatment as if the deceased had made the change.
Can a deed of variation be reversed or challenged?▼
A deed of variation is generally binding and cannot be reversed once signed. However, it can be challenged on the usual contract grounds (mistake, misrepresentation, undue influence) or if a minor's interests were not properly protected. HMRC can also challenge the tax treatment if the deed is not properly drafted or does not contain the required election statements.
Are you administering an estate?
The WillSafe UK Executor Guide (£25) walks you through every stage of estate administration — including when to consider a deed of variation and when to get specialist advice.
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This article is for general information only and does not constitute legal or tax advice. Deeds of variation involve complex tax elections — consult a solicitor specialising in estate administration before proceeding. WillSafe UK is not a firm of solicitors. Last reviewed 13 May 2026.