Deed of Variation Question

Trusts Discussion
1

On the premise that an outright gift to a limited company is made by Will (and so, by extension, a Deed of Variation of Will) would only be valid if the company is in existence at the testator’s date of death, the following issue arises. Would it be possible to vary a Will to make provision for a company incorporated after the date of death by giving the executors/trustees a discretionary power of appointment in favour of an individual beneficiary (AB) or "any company controlled by (AB) which is incorporated within [x] years of [the teatator’s] death?

Deborah Clark
Dexter Montague LLP

2

For an effective DoV there is no requirement that the company to which a redirection is to be made needs to be in existence at the date of death.

Thus, the beneficiary making the redirection could set up the company as part of the DoV. Alternatively, a company could be set up and then the DoV effects the redirection.

Malcolm Finney