Occasionally, a decedent's Will is void or out-of-date
because it was not amended to take into account their evolving circumstances at
the time of death. Alternatively, there might not be a will at all, in which
case the Rules would not have allowed the deceased person's assets to be
distributed as they would have liked.
A beneficiary may decide not to receive everything to
which they are entitled in order to ensure that everything is more in
accordance with the deceased person's wishes or to give some or all of what
they are entitled to others they consider are more deserving. To qualify for
the advantageous tax status that the modified inheritance may bring about, a deed
of variation will is needed. This allows the IHT and CGT positions to be
"read back" until the point of death as long as certain protocols are
followed.
If someone is affected by the Rules, they
are not eligible to choose an alternate receiver, and they cannot inherit
The inheritance
reverts to the estate and is distributed in line with the terms of the will or
testament, just as if the intended beneficiary had died before the deceased
individual. A person's will often dictates how their estate is distributed upon
death. By using a will, the concerned person can legally document their wishes
in this regard, including how their assets are to be administered. A probate
deed of variation can help reallocate assets to people who are more
vulnerable or in need by giving a beneficiary the power to alter how the assets
are distributed. This may be the case if a beneficiary want to protect a loved
one from the expenses of a residential care facility or wishes to cover any
special needs. Giving to charities reduces tax obligations in addition to
advancing charitable causes.