Deeds of variation: changing an inheritance after a death
A will is not always the last word. Within two years of a death, beneficiaries can redirect what they receive, and if the right statements are included, the change is treated for tax as if the person who died had made it.
By Robert Festenstein, Head of Legal
Updated 26 October 2026
4 min read
Key takeaways
- A deed of variation must be made within two years of the death, in writing and signed by the beneficiaries giving something up.
- With the right statement, the change is read back into the will for inheritance tax and capital gains tax.
- It cannot be made in return for payment, and beneficiaries under 18 cannot give up their share without court approval.
- Common uses are skipping a generation, adding a charity gift to reduce the inheritance tax rate and providing for someone left out.
What a deed of variation does
A deed of variation changes how an estate is distributed after a death. It can be used whether there is a will or the estate passes under the intestacy rules, and for jointly owned assets that passed by survivorship. The beneficiary who gives up an inheritance signs the deed, redirecting it to someone else or into a trust.
Without a deed, a beneficiary who receives an inheritance and then passes it on makes a gift of their own. That gift is a potentially exempt transfer, or a chargeable transfer if it goes into a trust, and may bring capital gains tax. A deed of variation avoids that if it meets the conditions.
The conditions
- It must be made within two years of the date of death.
- It must be in writing and signed by every beneficiary whose share is reduced.
- It must contain a statement that it is to be treated as made by the deceased for inheritance tax, and a separate statement for capital gains tax if that is wanted.
- It cannot be made in return for money or any other benefit, apart from another variation in the same estate.
- Beneficiaries who would lose out must be adults with capacity. Changes affecting minors or unborn beneficiaries need court approval.
The deed only needs to be sent to HMRC if it increases the inheritance tax due. In that case the personal representatives must sign it too, and it must reach HMRC within six months of being made.
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How families use them
- Skipping a generation. A child who is already comfortably off can redirect an inheritance to their own children. This keeps it out of the child's estate for inheritance tax.
- Using the charity rate. Adding a charity gift so that at least 10% of the estate, measured after exemptions, reliefs and the nil-rate band, goes to charity can reduce the rate to 36%. The charity must be told about the variation.
- Moving growth out of the survivor's estate. Where everything was left to a spouse, part can be redirected to children, so that future growth on it falls outside the survivor's estate.
- Providing for someone left out. For example, a partner who was not mentioned in an old will.
- Creating a trust. Redirecting an inheritance into a trust for children or grandchildren. See trusts explained.
Disclaimers
A beneficiary can also disclaim an inheritance, refusing it entirely before accepting any benefit from it. A disclaimer cannot choose who receives the share instead: it passes as if the beneficiary had died before the person who made the will. A deed of variation gives more control and is more often used.
A variation changes the tax for the estate and for each beneficiary. Our accountants check the inheritance tax, capital gains tax and any income tax before the deed is signed, and our solicitors draft it.
Frequently asked questions
How long do I have to make a deed of variation?
Two years from the date of death.
Who has to sign a deed of variation?
Every beneficiary whose share is reduced. The personal representatives must also sign if the variation increases the inheritance tax due.
Does a deed of variation need to go to HMRC?
Only if it increases the inheritance tax payable, and then within six months of being made. Otherwise the executors keep it with the estate records.
Can I vary an inheritance in favour of my children?
Yes. Redirecting an inheritance to your children within two years can keep it out of your own estate for inheritance tax.
Sources & further reading
This article is general information, not advice. Tax, financial and legal rules change and their effect depends on your circumstances. Check the current position and take professional advice before acting. Last reviewed 26 October 2026. Totus One Limited (company no. 16855798).
A solicitor who has led his own SRA-regulated practice for over two decades, specialising in disputes and insolvency.
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