Updated: April 2026 • Based on UK Law

What Is a Deed of Variation?

A deed of variation is a legal document that allows a beneficiary to redirect all or part of their inheritance to someone else. It must be completed within two years of the date of death and is treated by HMRC as if the deceased made the change.

This guide covers how a deed of variation works, what it costs, whether you need a solicitor, HMRC rules, benefits, disadvantages, and alternatives.

A woman inherits £400,000 from her mother’s estate.

The estate is above the inheritance tax threshold. The tax bill is significant.

Her mother’s will left everything to her — but her mother would have wanted the grandchildren to benefit too.

A deed of variation lets her redirect part of the inheritance directly to her children.

HMRC treats it as if her mother made the gift. No seven-year rule. No additional inheritance tax. No gift tax.

That’s the power of a deed of variation — and why it’s one of the most underused tools in UK estate planning.

✓ Deed of Variation Template (UK)

Answer guided questions or use the classic editor — your deed of variation is built for you. Covers the redirection of inheritance, IHT and CGT elections, beneficiary details, and the required HMRC declarations. Structured following the Inheritance Tax Act 1984 and Taxation of Chargeable Gains Act 1992. Preview every clause before buying — only pay when you’re happy with it.

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Is a Deed of Variation Legally Binding?

Yes — when properly executed.

For a deed of variation to be legally valid, it must:

  • Be completed within two years of the date of death
  • Be signed by all beneficiaries whose inheritance is affected
  • Be witnessed
  • Clearly identify the original will (or intestacy) being varied
  • Set out exactly what is being redirected and to whom
  • Include the correct HMRC declarations if tax benefits are intended

If the variation increases the inheritance tax payable, the executors must also sign.

Once signed, the variation is treated as if the deceased made the change themselves.

What Are the Benefits of a Deed of Variation?

A deed of variation is one of the few legal tools that lets you rewrite a will after someone has died — with full HMRC recognition.

Reduce inheritance tax.

Redirect assets to use the deceased’s nil-rate band, spouse exemption, or residence nil-rate band more effectively.

Avoid the seven-year rule.

A gift through a deed of variation is treated as coming from the deceased — not from you. No need to survive seven years.

Reduce capital gains tax.

Redirect assets before taking legal ownership. No disposal occurs, so no CGT liability arises at that point.

Provide for someone left out.

Add a grandchild, stepchild, partner, or carer who was not named in the original will.

Gift to charity.

Charitable gifts through a deed of variation are IHT-exempt. If 10% of the estate passes to charity, the rest qualifies for the reduced 36% IHT rate.

Set up a trust.

Redirect inheritance into a trust to protect assets for vulnerable beneficiaries, minor children, or long-term financial planning.

Redirect an Inheritance Within 2 Years of Death — Reduce Tax, Add Beneficiaries or Correct a Will

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What Are the Disadvantages of a Deed of Variation?

You only get one shot per asset.

Once you vary your inheritance, it’s treated as the deceased’s gift. If you later want to change the same assets again, the tax benefits don’t apply.

All affected beneficiaries must agree.

If even one refuses to sign, the variation cannot proceed for their share.

The two-year deadline is strict.

Miss it and you lose the IHT and CGT benefits entirely.

Cannot be used to avoid creditors or means-tested benefits.

If you redirect inheritance to avoid debts or stay on benefits, you will be treated as still owning the assets.

Cannot change executors or guardians.

A deed of variation only changes the distribution of assets — not the people appointed to manage the estate or care for children.

How Much Does a Deed of Variation Cost?

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.

You don’t legally need a solicitor — the deed can be a letter, provided it meets the legal requirements.

Our Deed of Variation template costs £22 — one-time, with lifetime updates and both Interview and Editor modes.

Do I Need a Solicitor for a Deed of Variation?

No — there is no legal requirement to use a solicitor.

The deed does not need to be drafted by a lawyer, registered with any authority, or filed with a court.

However, you should consider professional advice if:

  • The estate involves significant IHT or CGT implications
  • You are redirecting property (which may require Land Registry registration)
  • Multiple beneficiaries with competing interests are involved
  • You want to set up a trust as part of the variation
  • The estate is being administered and the variation interacts with the probate process

For straightforward variations — redirecting a cash sum or specific asset to a named person — many people complete the deed themselves.

Does a Deed of Variation Need to Be Sent to HMRC?

Only in specific circumstances.

If the variation increases the IHT payable, a copy must be sent to HMRC within six months of the deed being signed. The executors must also sign.

If the variation does not increase IHT, there is no requirement to notify HMRC.

If the variation creates or increases a charitable legacy, the charity must be notified for the IHT relief to be effective.

To claim the tax benefits, the deed must include the correct statutory declarations.

These are under Section 142 of the Inheritance Tax Act 1984 and/or Section 62 of the Taxation of Chargeable Gains Act 1992.

Is There an Alternative to a Deed of Variation?

Yes — but with important differences.

Deed of disclaimer.

You give up your inheritance entirely. It passes according to the original will or intestacy rules. You don’t choose where it goes.

Deed of gift.

You accept the inheritance and then gift it.

But this is treated as your gift — not the deceased’s. The seven-year rule applies, with potential IHT and CGT consequences.

Court application under the Inheritance Act 1975.

If you were financially dependent on the deceased and left out of the will, you can apply to court for reasonable provision.

This is a claim, not a voluntary variation.

A deed of variation is the only option that lets you choose exactly where the inheritance goes.

And it’s the only one where HMRC treats the gift as if the deceased made it.

Frequently Asked Questions

What is the most common inheritance mistake?

Not having a will at all.

Without a will, the intestacy rules decide who inherits — and they don’t account for unmarried partners, stepchildren, or close friends.

The second most common mistake is not reviewing a will after major life events.

Marriage, divorce, birth of children, or a significant change in assets — any of these can make an existing will inadequate.

A deed of variation can sometimes fix these problems after the fact — but only within two years of the death.

Is it hard to get a deed of variation?

Not if all affected beneficiaries agree.

The process is straightforward — draft the deed, have it signed and witnessed, and include the correct HMRC declarations if tax benefits are intended.

Difficulties arise when beneficiaries disagree or when the estate involves complex tax planning.

Can you do a deed of variation if there is no will?

Yes. A deed of variation can be used to vary inheritance received under the intestacy rules — not just under a will.

Do I need a solicitor?

Many people complete straightforward deeds of variation without one.

Our template includes step-by-step guidance throughout and is structured following the Inheritance Tax Act 1984.

Consider solicitor review for complex estates, significant tax implications, or property transfers.

The Truth About “Free” Legal Template Sites (What You’re Really Signing Up For)

Most websites offering a “free legal template” follow the same pattern:

  • You click because it’s advertised as free
  • You spend 10–15 minutes answering questions
  • At the very end, you must create an account or start a “free trial”
  • Your card is required upfront
  • The subscription auto-renews at £29–£39 per month

This isn’t a free template – it’s a subscription service. Many people only realise after being charged £300–£400 over the year.

Why These “Free” Templates Are a Legal Risk

  • Outdated wording: not aligned with current UK law
  • Missing mandatory clauses: required for legal validity
  • No compliance guidance: leaving users without legal context
  • No structured checklist: no way to verify the document works
  • Not kept updated: often unchanged when legislation changes

One incorrect clause can weaken or invalidate the entire document.

Hidden Problem: Many “Free Template” Sites Aren’t Even UK-Based

Many free or auto-subscription template sites operate outside the UK.

They use documents drafted for the US legal system, then loosely adapted for “international use,” which creates serious problems:

  • Incorrect terminology: taken from US contract law
  • Missing UK statutory references: essential legal requirements omitted
  • Non-applicable clauses: terms that don’t apply under UK legislation
  • Legal conflicts: risks breaching UK consumer, employment, or GDPR rules

Why Templates UK Does the Opposite

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Redirect an Inheritance Within 2 Years of Death — Reduce Tax, Add Beneficiaries or Correct a Will

Editor + Interview Versions Included • £22 One-Time Payment • No Subscriptions

Preview Deed of Variation Template
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Last updated: April 2026

Disclaimer: This guide provides general UK legal information, not legal advice. Laws are current as of April 2026.