Deed of Variation

[Fotoman]

Would it be feasible to apply for a Deed of Variation on my father's will to allow for the fact that he could have gifted £6,000 (2007 allowance and 2006 allowance) from his estate.

This is something we always used to comment on and joke about. However, he unfortunately died suddenly. Had he have known he was dying, he would almost certainly have given away all that he was legally entitled to do.

[Peter D]

No I'm afraid not. This allowance is during his lifetime and not directed by his will. Do you have an IHT problem ?? Where is you Mum in this situation. Regards Peter

[Fotoman]

Sadly, Mum died some years ago. Problem? Yes, I have a major problem with the Taxman taxing me 40% on money that my father had already paid 40% tax on!

[maths]

Don't forget that under the new rules whatever part of the nil rate band your mum didn't use can inflate your father's nil rate band.

If all mum's assets passed to her husband, for example,dad's nil rate band would be £600,000.