If you have received an inheritance from an estate which you wish to redirect to another beneficiary then provided this is completed within 2 years of the date of death of the original donor, then a Deed of Variation may be suitable in your circumstances.

Usually, if you make a gift during your lifetime but die within 7 years of the date of the gift then the value of the gift is added to your estate for inheritance tax purposes. By completing a Deed of Variation the gift is deemed as a gift from the estate of the original donor and as a result has tax advantages for both inheritance tax and capital gains tax purposes.

If you are considering making a gift after receiving an inheritance, please contact our Private Client team as soon as possible for further advice.