# Deed of variation — rewriting a will after death for tax or family reasons > Family & care · Last updated 26 May 2026 Canonical HTML: https://moneyguide.org.uk/family-life/deed-of-variation/ Markdown mirror: https://moneyguide.org.uk/family-life/deed-of-variation.md ## Quick answer A deed of variation lets beneficiaries redirect an inheritance to someone else within 2 years of the death, as if the deceased had made the gift in their will. A deed of variation lets beneficiaries redirect an inheritance to someone else within 2 years of the death, as if the deceased had made the gift in their will. It's a powerful tool for skipping a generation, equalising family shares or improving the Inheritance Tax position. ## Key facts - Must be made in writing within 2 years of the death and signed by every beneficiary giving up part of their inheritance (s142 IHTA 1984 and s62(6) TCGA 1992). - If the deed includes the right statements, the variation is treated as if made by the deceased for Inheritance Tax and (separately) Capital Gains Tax — not as a gift by the original beneficiary. - Cannot be used if the new arrangement was paid for outside the estate, or if the only purpose is to claim social-security means-tested benefits. - Beneficiaries under 18 or lacking capacity cannot vary their share without a court order — a major practical limit. ## When a deed of variation makes sense Generation skipping: an adult child redirects their inheritance to their own children to avoid stacking it into their own future estate for IHT. Equalising shares: rebalancing between siblings where the will is dated and no longer reflects family circumstances (for example, one child has greater need). Charity tax planning: redirecting enough to a UK charity to take total charitable legacies above 10% of the estate triggers the reduced 36% IHT rate on the rest under Schedule 1A IHTA 1984. Using up unused allowances of the deceased — for example moving the family home to children to engage the residence nil-rate band. ## What must be in the deed A clear statement identifying the original will or intestacy entitlement being varied, the new destination, and the signatures of every adult beneficiary affected. An election under s142(2) IHTA 1984 if the variation is to take effect for IHT, and a separate election under s62(7) TCGA 1992 if it is to take effect for CGT. These elections are not automatic — without them the original beneficiary is treated as making a gift. If the variation alters the IHT payable, the executors must be told within 6 months and HMRC must be informed. A copy of the deed should be kept with the probate file. ## Disclaimer vs deed of variation A disclaimer is a refusal of the inheritance, which then passes as if the beneficiary had died before the deceased. It's simpler but inflexible — you cannot choose who gets it. A deed of variation is a redirection. You decide where it goes. That flexibility is the main reason variations are used more often than disclaimers. Both must be made before any benefit has been taken from the inheritance — once the beneficiary has spent, sold or made a positive election about the asset, it's too late. ## Frequently asked questions ### Do all beneficiaries have to agree? Only the beneficiaries whose entitlement is being changed. A residuary beneficiary giving up part of their share signs; an unaffected legatee does not. Minors and beneficiaries lacking capacity need court approval, which makes some variations impractical. ### Will HMRC challenge a deed of variation? HMRC accepts properly drafted deeds with the statutory elections. They do not accept variations made for the sole purpose of qualifying for means-tested benefits, and they look closely at variations that appear to be paid for from outside the estate. ### Can I vary an intestacy as well as a will? Yes — s142 applies to inheritances under intestacy rules as well as under wills, and to nominated or survivorship assets. The same 2-year deadline and election rules apply. ## Primary source https://www.gov.uk/inheritance-tax/passing-on-home ## Related - [Wills & intestacy](https://moneyguide.org.uk/family-life/wills-and-intestacy/) - [Inheritance Tax explained](https://moneyguide.org.uk/benefits-tax/inheritance-tax-explained/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.