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Where Taxpayers and Advisers Meet

Deed of Variation with sudden death and wife in home

sdodds
Posts:2
Joined:Wed Aug 06, 2008 3:05 pm

Postby sdodds » Wed Oct 01, 2003 4:17 am

My Father-in-law has suddenly died and has left a will leaving all to his wife, then to their only daughter. Two weeks prior to my father in laws death my mother in law went into a home suffering from a form of Altzymers (Getting worst very quickly - Also with a limited life expectancy)

We have been left with sorting the estate out and obtaining POA on my mother in law. We had heard about the deed of variation and thought it would work in this case as my father in law would have changed his will as my mother in law is well provided for under her own money.

The problem as we see it is that the my wife is both the executor of the will, POA of her mother and the sole beneficiary of the estate after her mother.

Is the deed of variation still worth going for to avoid the Tax situation?

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Wed Oct 01, 2003 4:26 am

sdodds

You ahould be able to make a deed of variation using your wife's Power of Attorney. Her status as an executor and potential beneficiary should not matter.

As a more sophisticated strategy, I would recommend establishing a Will Trust (by way of deed of variation) as this would enable effective Inheritance Tax (IHT) planning for your parents-in-law's generation, you and your wife's generation and for future generations. There are also income tax advantages in respect of any income generated by the assets forming the estate.

Please contact me if you require bespoke advice.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852

sdodds
Posts:2
Joined:Wed Aug 06, 2008 3:05 pm

Postby sdodds » Wed Oct 08, 2003 3:48 am

Nigel Lord

Thanks for the advice, we are going down the road of deed of variation now. It is nice to know that good advice is out their. Our solicitor is supportive of the move but did not suggest it. This is the first time I have had to deal with a persons estate and this web site has been one of the better places to visit. The advice and the resources area are both very good.

Simon Dodds
Leeds


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