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Planning after death - Deeds of variation & disclaimers

Death can lead to unwanted financial consequences, either in the absence of a will (known as intestacy) or because the wishes of the beneficiaries differ from those of the deceased.

In either event, it is possible for those entitled to a deceased's estate to vary the way in which it is distributed, or to disclaim their entitlement. As long as the variation or disclaimer is effected within two years of death it will be read into the will as though the deceased had written the changes in themselves. It is necessary for all concerned to consent to the arrangement.

Such changes will also be effective, upon appropriate elections being made, for inheritance tax and/or capital gains tax, provided such elections are submitted to the Revenue within six months of the 'deed of variation' or disclaimer.

Because deeds of variation and disclaimers can result in significant tax savings they remain a potential target for reform and we would strongly urge you to ensure that your will is up to date and tax-efficient now, rather than rely on the continuing opportunities for 'post-death' tax planning.

However, if you do need to consider 'retrospective' planning, to reduce or eliminate tax arising from a family death, do let us know.



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