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Where Taxpayers and Advisers Meet

Deed of Variation - Deprivation of capital?

swandive
Posts:16
Joined:Tue May 26, 2015 1:03 pm
Deed of Variation - Deprivation of capital?

Postby swandive » Thu Jun 04, 2015 10:56 am

If part of a spouse's estate, who died intestate, is given to a sibling via a Deed of Variation, prior to granting of probate, (therefore by-passing the surviving spouse) when the surviving spouse subsequently enters a claim for pension credits, would such actions be viewed by the authorities as deprivation of capital?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Deed of Variation - Deprivation of capital?

Postby maths » Thu Jun 04, 2015 11:10 am

A Deed of Variation is simply a gift of property.

It therefore does constitute deprivation of capital. If a surviving spouse inherits under the intestacy rules and then executes a DoV the spouse is gifting property inherited and hence deprivation.

It does not matter whether the DoV is executed pre or post the obtaining of probate.


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